Board governance, product market competition and firm performance

Board governance mechanism and product market competition are two extremely important factors affecting the internal and external governance of the company, and improving company performance is the fundamental purpose of internal and external governance of the company, thus it is of great significance to study the relationship between board governance mechanism, product market competition and company performance. This paper selects the relevant data of A-share state-owned companies listed on the SSE from 2017 to 2021, and uses multiple regression analysis to analyze the relationship between board governance mechanism, product market competition and company performance, and uses two-stage regression analysis to conduct endogeneity test. The results show that: first, as the size of the board of directors continues to expand and the number of independent directors continues to increase, the company’s effectiveness decreases significantly; second, the company’s performance increases significantly when the intensity of competition in the product market in which the company is located increases; and third, there is a positive moderating effect of the competition in the product market on the relationship between the board of directors’ governance and the company’s performance.