Research On Performance Evaluation Of Auto-Industry Based On Factor Analysis

With the maturity of our country's capital market and the number of listed companies, the performance evaluation of operation becomes a hot topic for research of industrial and academic fields increasingly. This paper provides evidences for the concerned person making important decision through comprehensive evaluation for Auto-Industry listed company. Meanwhile, as knowing the status among the industry through comparing with others,the company can not only be encouraged and spurred, but also be provided thought for improving operation performance.The paper firstly explains the background and research meaning for the chosen topic, and traces back the development process of performance evaluation, especially, reviews research status quo of factor analysis model simply, then forms the skeleton of the article through radicating resarch thought and research measure, and establishes theory basis for continuing research design through introducing concerned theory of performance evaluation, then constructs theory evidences for further analysis through analyzing several kinds of common performance evaluation methods and pointing out advantage and disadvantage, mainly introducing the fundamental and processes for factor analysis method.Secondly, coming into the stage of model designing through theory analysis and linking the features of performance evaluation of Auto-Industry, choosing variables mainly on the basis of the features of industry itself, inducing main operating return growing rate variable which is reflecting market competition ability and business activity cash flow per share variable which is reflecting the quality of business activity cash flow and net capital growing rate variable which is reflecting the growing ability of the company on the basis of original variables. Moreover, establishing factor analysis model, as existing complicated correlationship, different features and directions among a cluster of original variables, it is difficult to make correct judgement for the economic efficiency status of different companies according to single variable or a cluster variables. For solving the troubles, the paper chooses factor analysis in multi-variables statistical method to extract the information from the original variables included, under the condition of permitted information missing, can acquire a few principal factors which is reflecting main information, then acquire comprehensive factors--called principal factors in this paper--which can be explained economically.Lastly, providing evidences of dicision-making impersonally and reasonably for investors through conducting analysis evaluation, sequence analysis and clustering analysis, and putting forward policy advices, according to the chosen variables and factor analysis evaluation model with SPSS14.0 software for the chosen financial data of 30 Auto-Industry listed companies of A stock of hu and shen from Sep.30th 2006 to Sep.30th 2007 which is from Finance and Economic Net of Sohu.