Research Of Synthetic Evaluation System For Sustainable Development Of The Listed Companies

It is difficult for a listed company to adopt rapid changes of the society. We can see more failure phenomena of the listed company. The problems of sustainable development of companies have brought out more and more attentions. To the decision makers of the country and listed companies, it is an austere problem to promote companies' abilities, to keep the challenging advantages and to realize sustainable development. Sustainable development is a strong safeguard for the listed companies to realize maximization of shareholders' wealth. A synthetic sustainable development evaluation system is used to evaluate a company's ability for sustainable development.From quantitative and qualitative analysis of asset operation, financial benefit, profitability, core competence, corporate governance and interval and external environment of the listed company, the evaluation system uses scientific and normalized evaluation indices and methods to get right, true and objective synthetic sustainable development situation on operating results and risks. The evaluation indices are, devised to reflect the company's survival ability (competitive advantage), and development ability (competitive potential). The way and ability for a company to transfer development ability into competitive advantage are determined by the company's strategy decision and management ability.Shareholders, managers and staffs, creditor and government are elements of sustainable development evaluation for the listed companies. The evaluation system has four functions: measuring, forecast, orientation and administration. Five phrases are included in the system step by step: fixing evaluation objective, devising evaluation system, organizing and implementing, selecting evaluation standards and methods, and reflecting evaluation results. When constructing the indices system for sustainable development, following scientific principles and methods and combining existed research results, we pay more attention to the meaning of ability fro sustainable development. Also we give attention to the completion and operability.On the consideration of characteristics of domestic security market and actual situation of listed companies, the system is composed of four sub-systems: survival ability subsystem, competence ability subsystem, governance ability subsystem and environmental harmonization ability subsystem. The system has four levels: A, B, C and D. Level A is the synthetic sustainable development ability. The primary index level B includes above four subsystems. The secondary index level C has 19 indices subordinate to different subsystem in level B. And the tertiary index level D has 54 indices subordinate to those in level C. Based on experts' judgments, the pair-wise comparison matrices are got between correlate indices. Using AHP, the weights reflecting the importance of different indices are got after consistency checking. All weights for indices in level D are got by combining weights to different levels. In order to give scientific evaluation to the extent of sustainable development of listed companies, fuzzy comprehensive evaluation method is used. Referring to evaluation standards for listed companies' financial indices listed in annual report and industrial data, the membership function for each tertiary index are given. Five comments are distinguished according to different membership degrees. The extent for a listed company's sustainable development is determined by synthetic membership degree of all indices. Multi-layer fuzzy comprehensive assessment method is used to construct the evaluation system. Using this system to a listed company, YongYou software (600588), a membership degree measuring the strength of sustainable development is got. Comparing to the authoritative judgment to the performance evaluation of the corporate, the evaluation system for sustainable development gives a similar result.Based on and inherited from the indices of development ability and core competence, the evaluation system for listed companies' sustainable development retains merits and traits of existed indices and adds corresponding indices reflecting sustainable development of a company. The system is an efficient combination of traditional and contemporary concepts. The evaluation system gives a new research method for the sustainable development of the listed companies. It is also a supplement to current performance evaluation system. Correct evaluation can give right evaluation to the prospective of different listed companies; lead the corporate to the right operation direction. It is also advantageous for the investor to select valuable companies and to share fruits from sustainable development.