Performance And Risk Analysis Of Listed Companies In Hebei Province

In recent years, the study on the performances of listed companies in China has been paid close attention to. A general consensus has been reached that there might be a lot of potential risks since many listed companies have not been performing well in a long term. The comprehensive performance of listed companies is the aspect mostly concerned by both managers and investors, while financial risks are especially difficult to avoid. Since the reform and opening up, with the development of market economy, a series of financial problems come one after another—the operational performances worsening and risks aggravating. Previous studies have mostly focused on the separate discussions of operational performances or risk level of listed companies only, and the interactive relationship between the two have seldom been studies. This article intends to explore the relationship between operational performances and risks of enterprises, through empirical research on listed companies of Hebei Province.The study has been carried out centering on the relationship between operational performances and risks of listed companies. Both quantitative and qualitative analysis has been made, relying mainly on quantitative analysis. The study is based on the actual operational data of listed companies in Hebei Province, using comprehensive evaluation, hierarchical clustering method, principal component analysis and multiple regressions.The main contributions of this article are:①analysis has been made using comprehensive evaluation to sort the 37 listed companies of Hebei Province based on their performances;②the 37 companies have been classified as highly risky companies, sub highly risky companies, special-mentioned companies and common companies using hierarchical clustering method;③the operational risks of these companies have been analyzed using principal component analysis;④a multiple regression model is established between the performance and risks of these listed companies.The current performance and risk situation of listed companies in Hebei Province is presented through comparison and induction. An impact-factor analysis of the overall performance of these companies is made through multiple regressions, to obtain the influence of risks on performance. Based on the previous results, risk analysis is made and countermeasures for risks are proposed, in the hope that these results could help elevating the overall performance of list companies in Hebei Province.