Based On Grey Entropy Method Of Performance Evaluation Of Listed Companies

In recent years, China’s stock market has seen rapid development and with more investors participating in the market, effective evaluation of the performance of listed companies is becoming more and more concerned by the government, investors and business decision-makers. On the basis of qualitative analysis, we add two types of indicators which individually reflect the return to shareholders and the risk level into the enterprise performance evaluation system, combined with indicators measuring profitability, operations efficiency and development capacity, in order to give a full-scale performance evaluation of listed companies. This method has fully considered the interest of investors and can effectively guide the enterprises to focus on shareholder returns and benefit-sharing. And at we will also use of principal component analysis to do further screening of the indicators to get more typical ones.Then we use Grey-Entropy analysis method, a comprehensive analysis of entropy method and gray whitening weight function analysis method, to evaluate the performance of the sample companies and finally get the performance probability belonging to each rating grey classes "better""good""medium""low""lower". And we also analyze the listed company’s ability to balance different operating capacities according to the probability distribution of the model results. This Grey-Entropy model overcomes the shortcomings of the traditional evaluation method which only give simple ranking of different companies, and is helpful for the listed companies to identify the direction to improve performance.