Research On The Debt Financing Efficiency Evaluation For Rare Earth Listed Companies

Financing is one of the most important research fields of modern company finance, with the deepening of the theoretical research, scholars have gradually turned their attention to the enterprise financing efficiency issues– how different financing decisions impact the enterprise. It is not mature of China's capital markets, so debt financing is still the main channel for enterprises'finaning in a long term, the financing efficiency not only affect the enterprises'adequate degree of fund, but also affect the enterprise management structure and operating performance, it's very important to the enterprises'development. Based on the above reasons, the debt financing efficiency of enterprises will be researched with the debt financing efficiency evaluation regarded as a breakthrough.Based on the strategic position of rare earth industry in national security and national economy, there is strong policy effect to rare earth enterprises'financing inevitably, which has certain theoretical significance in the existing economic system of China. Meanwhile, financing problem is one of many issues faced by rare earth industry at the present time; the improving of the finaning efficiency has practical significance for the development of rare earth industry. Based on the above reasons, the rare earth listed companies will be regarded as the research objects.A few problems mainly exist in the existing research of debt financing efficiency evaluation: the selection of evaluation indicators is optionally, non- systemically, and it does not facilitate the improvement of financing decisions; evaluation methods exist on a "black box", which is unable to clear the formation mechanism of efficiency, can't distinguish the responsibility or clear the improving direction. Based on the results of existing research, this paper studies from the following aspects: First, the concept of debt financing efficiency has been re-defined, and the debt financing efficiency is divided into two levels: the efficiency of financing and the efficiency of utilizing,from which the efficiency of debt financing is described; Second, the debt financing efficiency evaluation index system is constructed with the debt financing decision-making as a starting point; Third, two-stage production system DEA model is introduced to debt financing efficiency evaluation. Combined with the method of factor analysis; the evulation system is used to evaluate and analyze the debte financing efficiency of rare earth listed companies from 2005 to 2009; the stage-evaluation of debt financing efficiency is realized. At the same time the key influence indexes of the listed corporations'debt financing efficiency are determined by gray correlational analysis method, it provides a workable improvement plan for rare earth listed companies to improve debt financing efficiency. In the empirical analysis section of this paper, rare earth listed companies'debt financing efficiency from 2005 to 2009 is evaluated, it showed that the rare of debt financing efficiency is low; which is less than 60% of optimal efficiency. And the reason is that the efficiency of the financing-stage is low, and not matched with the fund using-stage. The financing policy priority for rare earth listed companies is: term structure, financing channel and debt financing quantity.The debt financing efficiency evaluation system constructed in this paper with debt financing decision considered as a starting point in the index selection and two-stage DEA utilized as the evaluation method, realized the stage-evaluation of debt financing efficiency, and provided more workable conclusions for debt financing decision making.