Research on Product Market Competition Effect on Corporate Efficiency Based on Stochastic Frontier

This paper analyzed the relationship between product market competition and corporate efficiency using the stochastic frontier technology.The effect of competition is different with competition extent.In highly competing industries,competition is positive to efficiency.This correlation also exists in lowly competing industries.In middle competing industries,the relationship is the inverted U-type curve.Meanwhile,we find the existence of large company can improve the efficiency for companies.By the way,we find that efficiency-structure hypothesis is not reasonable for China listed companies.