Research On State Farm Financial Performance Evaluation Of State-Owned Assets

An integrated business operation system is implemented for Chinese state farms, which includes multi-legal persons and is actually a multiple level system of state economic nature. Such a system is featured with regionalization, socialization, and industrialization. The state farm is not always an enterprise, but also of great social responsibilities. State farms are expected to provide a certain number of public products as well as public service. It is just because the state farm economy undertakes those non-economic functions such as stabilizing the society that the measurement of state farm property is quite a challenge. Errors might be occurring with the financial performance assessment due to the social connotation of their business activities, hence the research challenges objectively found. This paper begins with the theoretical interpretation of the performance assessment of industry. Base on the study of performance assessment on both international and domestic enterprise and the review of the practical achievement, an index system for the financial performance assessment of state farm property is built, followed by the evaluation and analysis on the financial effects, operation capacity, cooperate liquidity, and the comprehensive situation of its financial performance. Conclusion is consequently made so as to provide evidence for decision making agency of state farm property management with the purpose to improve the efficiency of state farm property management.The paper is composed of four chapters as the follows:Chapter 1 mainly introduces the theoretical background and significance of this study. A briefing is made on the contribution from scholars from home and abroad on financial performance assessment. Also mentioned are their research, methodology, technical modality, and the innovation as well as constraints of their research papers.Some briefing on the economic situation and information on the research target was given in the Chapter 2 and Chapter 3, based on which, an index system for the financial performance assessment of state farm property is built with reference to the promulgated related rules and regulations on the financial performance assessment of state farm property, and give the brief explanation and indication of the index system.In Chapter 4 to Chapter 8, property and liability are the preliminary forms of the economic rights and obligations entitled by enterprises to be engaged in business activities. This part starts from the state farm property and liability. A brief analysis is made on the fluctuation of property and liability during 1998-2005. More analysis is done for the profitability, operation capacity, and liquidity of state farm property in 1998-2005. Reasons for the distinctions between various state farms and state farms in the east, mid and west region of China on their profitability, operation capacity and liquidity was given. Then, a comprehensive analysis on the financial performance assessment on the state farm property is done so as to achieve the assessment result, and identify the business situation of state farms as a whole, advantages and weakness of different state farms, and their current positions. This is of practical significance to the supervising and monitoring on the state farm property.In Chapter 9, a concise conclusion is made to present some major point of views, results, and proposals based on the study.The innovative points about this paper are as following:1. There is no document on the evaluation of financial performance assessment on state farm property available. Therefore, this study is the first systematic research of its kind, and hence provides technical support for deeper study the financial efficiency and management of state farm property.2. An index system for comprehensive performance assessment on state farm property is built.3. Principle Component Analysis and Factor Analysis are firstly adopted in assessing the financial performance of state farm property. Special analysis and comprehensive analysis are conducted on the assessment index system for state farm property financial performance respectively. Such a method not only reflects the variation of special index, but also indicates the financial performance in macro way, and therefore more pervasive.4. Comparison analysis and evaluation is made on the financial performance in various state farms from a micro way. The comprehensive situation of state farm financial performance is thus studied. At the same time, variations are identified between different state farms. That is of referential and practical value to locate the individual farms in the whole state farm system.