In this study, innovation and market power, as intermediary factors, explore the relevance in cross-strait listed companies between corporate governance and financial performance. This study selected from 2010 to 2014 publicly traded companies in Taiwan and China Shanghai and Shenzhen Stock Exchange as samples, using Panel Data analysis. Empirical results show that, in the case of the whole industry, the board of Taiwan and Chinese companies will influence the financial performance through innovative activities, but not by market power. In the electronics industry, we also found that companies in Taiwan will be controlled with innovation to improve financial performance. On the contrary, the electronics industry in China will be to control the market power to influence the company's profitability. In the non-electronic industry, both in China and Taiwan we found that companies will use innovation activities affect financial performance. This was observed no matter what industries in Taiwan the boards will handle innovation activities to affect financial performance, while Chinese companies in the non-electronics industry will control innovation to affect its financial performance, but the electronics industry the boards will influence financial performance with market power.