Study On Financial Performance Evaluation Of Listed Steel Companies In China

Joint stock companies are dominant strengths in market economy. As emblematical representatives of companies, listed companies have become the most important capital investing and financing objects. The performances of listed companies are the key element to resource configuring and competing. Therefore, financial performance evaluating of national listed companies becomes more and more significant. Steel industry is a fundamental and supporting industry to industrialization. Chinese listed companies in steel sector are good representatives of the development of the steel industry and their financial performances integratively reflect the developing status of the steel industry. Evaluating listed steel companies' financial performances, finding the gaps by comparison, analyzing the influencing reasons and pointing out the improvement directions are hot topic in economy.In this thesis, listed steel companies' financial performances were carefully and systemically studied by drawing lessons from all performance evaluation systems. Firstly, we evaluated financial performances from the individual to the listed steel companies. Secondly, the reasons influencing the performances were investigated. Finally, the strategies, both for the individual and the listed steel companies, to improve their financial performances were discussed in according to the evaluating results and the influencing reasons.There are 6 sections in this thesis. In section 1, i.e., introduction, the goal, methods and innovations of the thesis and researching summarization were introduced. Section 2 is named 'The theories of financial performance evaluation for listed companies' and provides the theory sustainment for the other sections. The constitute factors to financial performance evaluation system were emphasized in this section. The 2006 financial year's financial performances of listed steel companies were studied in 2 parts in section 3, financial performance evaluation of listed steel companies. In part one, the financial indexes connecting to the financial performances, i.e., the ability to sinking, operating, profiting and growing, were analyzing individually. Then, principal components analysis (PCA) was employed to study their integrated financial performances. In section 4, the financial performance of the leading listed steel companies, Baosteel, was carefully investigated from 2000 financial year to 2006 financial year. And its financial performance of 2007 financial year was predicted by using time series predicted method. Section 5 was designed to discuss the reasons influencing the performances and work out the strategies to improve their financial performances. The strategies to improve their financial performances were pointed out in according to the evaluating results and the influencing reasons in the section. Section 6 is named 'Conclusions and expectation'.It is shown that the abilities to servicing and developing of the listed steel companies are good as a whole, but the ability to sinking is not good and the ability to profiting is lower than the average of the other listed companies in 2006. The integrated financial performances of the listed steel companies are better. The financial performance of Baosteel is prior to that of the other listed steel companies from 2000 to 2006. It is proved that Baosteel is a leading company in steel industry. In the furture, listed steel companies must face both opportunities and risks, and try their best to improve their financial performances.