Returns Versus Risks An Empirical Study Of Automobile Related Industties Public Companies

At the end of 20th century the global automobile industry has encountered the problem of excessive capacity. Our automobile industry, however, is meeting a situation-expansion of domestic market, official announcement of entrance into WTO on January 1st, 2002. Reducing import tarriff and eliminating import quota will have direct impact on our automobile vendors. They will compete with foreign manufactures directly. This research focuses on how these vendors should adjust their strategies to this changing environment.This thesis has selected 49 vendors including 22 car manufactures, 27 automobile parts companies. Scale, export ratio and technological workers ratio are selected as factors to analyse automobile parts companies' returns and risks. Statistics analysis is used to verify related hypothesis.The result has suggested that our country's automobile industry bean unstable and profitable industry with high risk. Some manufacturers have outstanding performance such as car manufacturers, Xiamen Motor Co., LTD, Chongqing Changan Automobile Co., LTD, Dongfeng Automobile Co., LTD, and part makers, Fuyao Group Glass Industries Co., LTD, Shanghai Automobile Co., LTD, Dongfeng Electronic Technology Co., LTD. Many factors affect the results including scale, export ratio, technological workers ratio and so on. From the result of hypothesis analysis we can see there is no significant difference between car manufacturers and part makers in returns and risks;the vendors with high export ratio have higher returns and lower risks than those with low export ratio;the vendors with high technological workers ratio have higher returns and lower risks than those with low technological workers ratio;the large scale vendors have higher returns and lower risks than the small scale vendors in automobile part Industry.