Research On Cash Utilization Efficiency Of The Electrical Listed Companies Based On DEA

Cash is the necessary resource for enterprise development, it is of greatsignificance for the company how to improve the cash utilization efficiency.Electricity industry companies have more special requirements in terms of cash flowcompared with other industry company, they need a large cash investment for thepre-infrastructure and post-transformation, meanwhile the government has strictcontrols on the electricity price, which makes the electricity industry companies becharacterised by high investment, long construction period, and low operatingrevenues, and makes relatively high requirements for cash utilization. However, thestudy of cash utilization efficiency in the electricity sector is almost nonexistentcurrently, In view of this, this paper will tentatively study cash utilization efficiencyin China’s electricity section specifically, for a breakthrough in this regard.This paper reviews the related domestic and foreign research and theory of theutilization and held of cash, on this basis, we choose the electrical listed companies inShanghai and Shenzhen A-share from2006to2010as a research object, and analyzethe basic situation of their cash flow ratio and financial status. Then, through theestablishment of the panel Malmquist DEA model and the evaluation of the input andoutput indicators of cash utilization efficiency, we analyze the change of the overallcash utilization efficiency,technological progress, change in pure technical efficiencyand change of scale efficiency in electricity sector companies. The results show thatelectrical listed companies exist large uncertainties in the efficiency and managementof cash utilization, Although during the period of2006-2009the average level ofoverall cash utilization efficiency is slightly improved, the growth rate of overallefficiency exists obvious decline trend. The overall cash utilization efficiency inelcetrical listed companies is mainly from the advances in technology, but it exists alarge time fluctuations currently. The change of technical efficiency of electricallisted companies is mainly due to the change of scale efficiency.Moreover, the morelarge-scale electrical listed companies lack motivation more likely in thetechnological change and innovation of the cash utilization efficiency, but the smalland medium sized electrical listed companies tend to show higher efficiency. Finally,this paper mades a summary of the results, and propose specific policyrecommendations.