Empirical Research On Listed Companies’ Financial Performance Evaluation

Listed companies play an important role in promoting the development of thenational economy and capital markets. In1993, with the first listed company in HenanProvince has been set up which name is Zhong-yuan Environmental Protection Co.,Ltd. By the end2012, the number of listed companies in Henan Province is up to66.They have played an important role in improving the capital market and HenanProvince’s economic development. The performance evaluation is an importantenterprise management activity, which as an important topic ofeconomic-management has been concerned by practitioners and academics. Financialperformance is not only the basis of enterprises’ survival and development, but alsothe development of the enterprise’s fundamental driving force. Which became thecore content of the performance evaluation system, based on the characteristics ofintegrated and data is easy to collect. As financial Performance Indicators occupies alarge weight in the enterprise performance evaluation system, so it plays an importantpart of the company’s performance evaluation system.Financial performance evaluation index system design will directly affect thescientific nature of the performance appraisal. Build financial performance evaluationindex system from four aspects of profitability, asset quality, debt risk and the abilityto grow which is based on “The state-owned capital’s Performance evaluation rules”,which is issued by the Ministry of Finance. On Specific evaluation and analysis, weselect eight financial indicators of the financial performance to evaluate listedcompanies of Henan Province. First, we choose Shanghai A shares Henan listedcompanies’ financial data from2007to2011for the sample overall assessment of thefinancial performance of listed companies in the area of Henan Province. Second,After in grasp of the overall strength of the financial performance of the listedcompanies in Henan Province, then evaluated in accordance with industry. Throughcomparative analysis, to determine the status and the comprehensive strength of theprovince listed companies in the same industry.The empirical results show that:(1) Listed company’s overall financialperformance is relatively backward.(2) Presents the trend of the overall increase infinancial performance from2007to2011, in addition to the2009peak fluctuations.(3) The financial performance of the auxiliary transport industry, pharmaceuticalmanufacturing, electrical machinery and equipment manufacturing, ferrous metalsmelting and rolling processing industry, etc. are all in the middle position. And thefinancial performance of non-metallic mineral products manufacturing, transportationequipment manufacturing, non-ferrous metal smelting and rolling processing and etc.are all ranking stability and front.The study not only set up a consolidated financial performance evaluationsystem but also combined the regional evaluation and the industry evaluation. Withthe study we not only got a comprehensive and in-depth grasp of the financialperformance of the listed companies in Henan Province, but also got the changes inthe ranking of the financial performance of the listed companies in Henan reason thento make a specific analysis and to identify the impact of factors affect the rankingchanges. In addition, we also provide the basis for economic decision-making to theinvestors and creditors and other stakeholders.