Research On Evaluation Model Of Listed Company Financial Situation Based On IE-GRAP

With the rapid development of China's capital market and securities market, the listed companies'comprehensive financial status has been paid more and more attention by the stakeholders, Creditors, investors and managers, they all need to make comprehensive evaluation on the financial situation of the listed companies. Because creditors should seek the safety of the cast capital; investors need to make rational investment decisions; managers want to achieve the objective of maximizing corporate value. The traditional method of comprehensive evaluation of the financial situation most used the analytic hierarchy process (AHP) to determine the weights. But, through this method, the subjectivity of setting weight is too strong and the correlation of the evaluation indexes caused the overlap of the financial information. The result is that the objectivity and credibility of the evaluation results has been questioned. So, using the scientific and rational method to analyze and evaluate the listed companies'integrated financial status has become an important subject in the current financial management theory and practice.This study selected some representative indicators from a number of indicators and used (the information entropy) and (the grey relating analytic process) to determine the weights, and then it can minimize the subjective factors in the evaluation process and increase the objectivity and credibility of the evaluation results; used (GRAP) to determine the grey relational coefficient between the main financial indicators of the evaluated listed companies and the industry satisfaction financial indicators, and used the weights determined by the (IE) to make weighted synthesizing of relational coefficient of each indicator and obtained the integrated grey relational grade. Then, we established the evaluation model of the listed companies'comprehensive financial status. This method solved the problem that the subjectivity of the index weight set is too strong in existing studies; the evaluation requires large sample and the sample must be subject to the typical probability distribution and so on. This study provided new ideas and methods about integrated evaluation on financial status for China's listed companies.It is of great significance. Finally, this paper made horizontal in-depth analysis and empirical evaluation to the integrated financial status of China's 20 listed real estate companies, and determine their industry position of various listed companies'financial situation, So as to provide decision basis for investors, creditors and managers. And then made a vertical comparison of time series on one company among the 20 listed companies and analyze the trend of this enterprise's financial situation.