Performance Evaluation Of Forestry Listed Companies Under The DEA Method

In China, the forest industry is of major importance for national economy. It contributes significantly to China’s economic and social wellbeing development. Having a particular representation, forestry listed companies are leading the forest industry in China and are considered as the most indispensable part of China’s forestry enterprises. In this respect, it is extremely necessary to evaluate the performance of the listed forestry companies regularly. At the same time, evaluating performance sits in an important position in a company’s management on account of being one of the basic premises of performance management.Forestry is an industry with high investment and high profit, therefore, it requires a high level of investment and finance. There exist a series of problems in the development of forestry listed companies in China consisting of rapidly decreasing performance, poor market manifestation, the main products recession and sales polarization. We find that the origin of all those problems is the backwardness of the performance evaluation concepts and techniques. For this reason, coming up to a comprehensive performance evaluation technique to measure the performance of the forestry listed companies in China, analysing forestry listed companies in the whole industry environment, as well as evaluating the investment-profit operation efficiency can be extremely important to the owner and all the other stakeholders of that company.This paper first reviews the current situation of performance evaluation in China and abroad, then introduces the relevant theory and traditional methods of performance evaluation. After that, we take a comparison of the traditional performance evaluation methods and DEA (Data Envelopment Analysis), which indicates the the advantage of DEA in the overall performance evaluation field. By analyzing the characteristics of listed forestry companies, we can identify the problems of performance evaluation for them. Moreover, we apply DEA method to the performance evaluation for the forestry listed company and do a cross-sectional analysis on the performance of13companys in2010. As a result, we can come to the performance evaluation on the overall situation in2010, the evaluation on the integrated technology efficiency, pure technology efficiency and profit scale so that we can adjust our target. Finally, according to the above analysis, policy recommendations and specific measures are discussed based on4aspects:cost control, increasing the company to a reasonable size, improving technical skills, and bringing up innovative talents.