A Study Of Performance Evaluation Method For Real Estate Listed Companies Using DEA

Investors of Real estate listed companies is the community,so managers of those companies must conscientiously fulfil their obligations to disclose information to enable enterprises to be under the supervision and influence of shareholders,the community and other parties, thus effectively promote and improve the internal operation mechanism. How to correctly use the information to evaluate the real estate listed companies' performance scientificly and provide reference information for all stakeholders and corporate managers, is a problem that become more and more urgent and important in theory and reality. Various performance evaluation methods of real estate listed companies have their own advantages and disadvantages. For example, BSC(Balanced Score Card) evaluation, though it takes companies' long-term strategic objectives and short-term performance indicators into account, its main business is enterprises their own, thus the BSC does not apply to all enterprises, or the whole industry; The method of principal component analysis can translate multiple Indicators into few independent composite indicators, but it can't eliminate information of duplication of indicators. The purpose of this study is to construct an integrated performance evaluation method that applys to the real estate listed companies.This study analyzes DEA's applicability in the performance evaluation of the real estate listed companies through the comparative analysis between DEA and other real estate listed company's performance evaluation methods.From the the application steps of DEA,the study screens the appropriate decision-making units, establishes the input and output index system, determines the DEA model, selectes the sequencing method of the effective decision-making units. So far, the study constructs a complete set of DEA-based performance evaluation method for real estate listed companies.This study makes the 66 real estate listed companies on the Shanghai Stock Exchange or the Shenzhen Stock Exchange as a study example,and makes the 2007 annual financial statements as the basis for examples of data.Through the application of the method constructed in this study, the study carries out an example evaluation analysis to the collected 66 real estate listed companies combining qualitative analysis with quantitative analysis,and obtains the performance evaluation results of the selected 47 enterprises.Also,the study sorts 19 outstanding enterprises from the selected 47 enterprises.This study authenticates the effectiveness of the constructed method through the comparison of the results of the method constructed in this study and the actual situation and outcomes of other sort of evaluation method.