The Research Of Listed Electricity Companies' Performance Evaluation Based On Factor Analysis

Listed electricity companies is the focus of capital market for a long time as a window of the whole industry. The evaluation and analysis of electricity industry seems to be very important. The current evaluation and analysis of electricity industry are almost through countries policy orientation, the price of energy and the trend of demand and so on, but not through the companies' heart to seek development direction and momentum. This makes the power management performance evaluation system has many flaws. Using factor analysis can mostly uncover the level of the companies in this industry and it is very useful to the investor and country management apartment and the electricity industry itself. Traditional financial analysis methods to solve the defects of the face has a distinct advantage.lt is based on to inspect multiple objects simultaneously a comprehensive analysis of many data analysis methods. For investors, the state authorities and power companies themselves have important practical significance.This paper uses factor analysis to do research on listed electricity companies. First, overview the research of home and abroad of listed companies; second, described the ways of the research; third, collected the 40 electricity companies which are listed on Shenzhen and Shanghai stock exchange as the sample, used factor analysis to collected the four factors such as "Profitability,Solvency, Trading Ability". The ability to grow "to reflected companies" business performance and give the factor ranking and comprehensive ranking, and do separate analysis and evaluation and pointed out the factors which impact the company's performance; giving some recommendations about how to improve the companies'performance. Last, we considered the non-financial factors to make this method perfect.