Industry regulation's effect on the enterprise performance: From the Evidence of CPL

In the context of petroleum industry regulation policy and constantly change of enterprise external environment, transmission mechanism of industry regulation's effect on petroleum enterprise is taken as an entry point. Based on the financial indicators which are commonly used in enterprise performance evaluation, evaluation index system of petroleum enterprise is constructed combined with nonfinancial indicators which transmission mechanism reflects, and the key index factors are filtered by using the principal component analysis method. The enterprise performance under industry regulation is evaluated by using the related data of CPL enterprise in the period from 2002 to 2007. Research shows that financial performance presents volatility in the short term, yet in the long term, enterprise core ability will be promoted. The result indicates that industry regulation affects the level of enterprise performance by the direct transmitting of enterprise behavior and indirectly transmitting of market structure.