Abstract: The paper studies firm value and transmission mechanism of China geographic market which firstly uses China auto repair enterprise 1999-2008 micro panel data. The study finds that: The growth of Surviving value and entrance value is relatively slow, especially the Surviving value, but gap between them narrows year by year. Geographic market demand factor improvement can cause excessive market enter which through the enterprise number of intermediary effect to reduce the enterprise survives value and enter the value. The decline of administrative barriers to entry caused by the process of market transition is institutional factor shrinking the gap between Surviving value and entrance value. Unexpectedly, other structure factor, market concentration is not intermediary factors of transmission mechanism, the scale of the enterprise also have to increase endogenous sunk cost investment based the improvement signal of environment. So, the present micro intervention industry policy ideas need to be discussed.