Application Of DEA In Evaluation Of The Listed Electric Power Enterprises In China

The electric power is the pillar and basic industry, which has a strong relationship with the national economy and people's livelihood. The electric power companies take responsibility that is more social. At resent years, more reform measures have been took in electric power industry by the government. The electric power industry was departed to two parts, one is generate electricity company and another is the grid company. However, they were as a whole company before, that lead to electric shortage. After the 1979, the electric power industry was stepwise reformed. The China Huaneng Group and electric group in each local area founded for the reformation of the managerial system.This paper firstly reviewed the theory of the performance evaluation. Then we note the status quo of the domestic and foreign enterprises. Performance evaluation of the theory, such as the principal-agent theory, the theory of system changes, stakeholder theory. Then on the performance evaluation system, including performance evaluation subject, object, goals, targets, methods, and so on. In this paper, after a detailed evaluation of the performance, financial analysis package DuPont, EVA, the Balanced Scorecard, were all compared and analyzed. Finally, listed enterprises in the establishment of electricity Performance Evaluation Model at the same time, DEA method with AHP, fuzzy comprehensive evaluation method, BP neural network method, principal component analysis, and other common mathematical methods were compared. DEA method need not pre-determined weight, and between the indicators do not have to determine comparability. This paper firstly from the perspective of the system economics to analyzed the whole power industry system changes by using a series of major economic indicators in the past 26 years. The DEA analysis of the efficiency of the electric power industry showed that in the last 26 years growed, and with conclusion that the reform is effective. Then we selected the suitable and representative indicators to founded DEA model in the 40 listed eclectic companies in China to evaluate their performance. With the electric power industry longitudinal analysis and the listed companies' cross-sectional data analysis, we conclude the Electric Power Enterprise Performance status, and some measures for the Power enterprises to improve businessperformance.