Abstract: Incorporating the insights of the value chain theory, the contract theory and the prospect theory, this paper analyzes the internal mechanism how stakeholders affect enterprise's financial performance.It concludes that, the stakeholders'satisfaction is the key to influence enterprise's financial performance, and that how to rationally meet stakeholders'interests plays a pivotal role in enhancing the maximization of enterprises'financial performance.An empirical study on Chinese listed companies is conducted based on the panel data model.The analysis shows that, the stakeholders'satisfaction and the enterprises financial performance are significantly correlated, and the satisfaction level of different stakeholders is unreasonable.This according to Rvalue, an enterprise can further enhance its financial performance by rationally adjusting the input-output efficiency of different stakeholders.

Key words: stakeholders, firm value, panel data model