Empirical Study On Enterprise Financial Performance Integrated Scoring Method

Listed companies play important role in China's market economy. Performance of listed companies affects resources allocation of capital market and has become a common concern of shareholders, creditors, employees, government authorities and other stakeholders. It's been developed into an improtant research issue in the field of financial of how to evaluate listed companies'perfomance reasonably and correctily. Currently, a variety of methods has been developed for enterprise performance evaluation. Many domestic scholars keep working in this field, aiming at building and improing different performance evaluation system. Their study on the shortage of existing methods, mostly basing on subjective analysis and considerably affected by the academic level of researchers. An integrated system that could combine different perfomance evaluation methods has not been developed.This paper presents a research idea to combine differen perfomance evaluation methods. Using empirical research methods, evaluation results of different financial performance evaluation methods can be calculated. Variation of the results will be analysed and broken down into some basic impact factors by looking into the process of the method and operating information publiced by the companies. Factors will be classified in order to find out whether differences of calculation result are reasonable and when a certain method should be applied.This paper chooses China's textile companies listed in Shanghai and Shenzhen as sample, and calculate scores of the sample companies using a financial performance evaluating system, which is issued by State Assets Administration Committee. With mostly same indicators, a new evaluation model is constructed applying variation coefficient method. By analysing the ranking of the two serieses score from different models, it is found that scoring of individual indicators impacts appereantly on the composite score. Basing on all these analyses, this paper proposes a viewpoint that individual indicator scoring function distribution as well as parameters of the distribution should be demonstrated when designing an comprehensive performance evaluation method.The scoring distribution of indicators should be determined by its economic content so that indicators'score can differ enterprise appropriately. Abnormal fluctuations of indicator value that come with changes of management mode should be considered and appropriate mechanisms must be designed to exclude their impact. Indictor scoring distribution is the most important concepts presented in this paper.