| As one of the long term assets in iron and steel enterprise, fixed assets take great part of the total assets in the listed steel companies. The investment structure and use of fixed assets has an important influence on the competitiveness of the enterprises, which will also have influence on the benefits of the enterprises. Since the foundation of the nation, the investment in fixed assets in China has increased steadily. Until2011, the accumulated investment has reached about500billion. However, the increase of investment in steel did not have a positive influence on the technology of steel, thus making us to import steel with high value-added and high. At the same time, the resources conformity ability is weaker, it is urgent to important to improve the mergers and restructuring, as well as earn the scale effect; otherwise, it is a waste of resources of blind expansion.Review of literature at home and abroad, there are several problems in the study of investment efficiency in the steel industry, for example, there is no clear distinction between the efficiency and benefits. Even worse, there are lack of single input elements of literature research and analysis of factors affecting the efficiency. Then, combined with the characteristics of the steel industry, the definition of fixed assets in the steel industry is pointed out. What’s more, a calculation and analysis of29steel companies with the model of DEA are given. At last, it proposed the OLS model which is affecting the investment efficiency in the steel industry.The full text composes five chapters. The first chapter introduces the research background of this paper, proposed the significance of the research as well as the key contribution of the research.Chapter two, at first, the paper introduces the definition of DEA methods, as well as a whole description of the method. Then a whole comment on the investment efficiency both at home and at abroad is given, by doing so, it will point out the disadvantages in the current survey. Chapter three, it introduces the current situation about fixed investment situation in China. With the empirical analysis and theoretical analysis, it tries to find problems in the steel industry. Fist of all, it will analyze the current situation in the steel industry from the overall situation and regional development situation. It is easy to find that from2003to2011, the steel production capacity in China maintained a steady upward trend from the production point of view. The price of steel is downsizing since2011. From the overall sales point, the iron and steel industry experience steady growth situation. From the point of profit level, the profit growth rate has slowed down in the large and small sized companies. However, the medium sized companies are still in the rapid development of the state. From the point of the import and export situation, the main export products are crude steel and low value added steel products. We still need to import high value added and high tech precuts. Analyzing from the region of the steel companies, the iron and steel industry has regional characteristics about moving to the eastern coastal areas and acquisitions between companies in China. From2003to2011, fixed assets investment in China’s steel industry is still in the growth stage. The steel enterprises attempt to earn the economies of scale relying on the enterprise scale expanding. Though the above analysis, it shows that the China’s iron and steel industry is still in the phase o expansion. Generally speaking, there are five problems in the China’s steel industry. The first is blind expansion of the investment in fixed assets, which result in overcapacity exacerbated. The second is the investment cost is still high, which result in sharp decline in profitability. The third is the industry concentration is low, which result in low optimal configuration. The forth is slow updating of fixed assets. The fifth is weak in transnational investment and international market development.The fourth chapter is the empirical analysis of the listed steel company’s fixed-asset investment efficiency. Firstly, through the analysis of the reorganization of the efficiency and effectiveness of the literature, the paper will distinguish the economic efficiency and economic benefits, with the economic model, thus proposing a rational assessment of indicators of investment in fixed assets of validity. Secondly, it describes the DEA model, and choose CRS model as model in this paper. Then it points out the concept of efficiency of fixed assets, and constructs the efficiency of fixed assets investment model and the input-output factors. The paper chooses29steel companies from2003to2011as research objects. With the objects, it will measure the efficiency of fixed assets investment. At last, it will conclude the paper from three aspects; they are the overall characteristics, four regional characteristics and the temporal evolution. Finally, it introduces the factors which have influence on the fixed assets investments. Though the OLS model; it found the larger size of the steel companies, the efficiency of the fixed assets is lower. The increase of the technical personnel in the iron and steel enterprises can bring about the significant efficiency of investment in fixed assets. The regions did not have a close relationship with the efficiency of fixed assets investment. The high ownership concentrations of iron and steel enterprises have a significant negative impact with the fixed assets investment efficiency.The fifth chapter is conclusion and suggestions. Through the above analysis, it will give several suggestions for the iron and steel enterprises. The companies should increase innovation to improve technology; they can perfect the fixed assets scrapped, processing, inventory work, thus improving the turnover rate of fixed assets. They can also take the reform of ownership structure, strengthening the equity dilution and incentive policy. What’s more, they can seize the opportunity of merger and reorganization, which can largely improve the efficiency of fixed assets investment. Last but not the least; they can improve the internal control system of fixed assets and management system.The main contributions of the paper are as follows:by accurately distinguish between economic efficiency and economic benefit:it puts forward the concept of fixed assets investment efficiency. What’s more, it uses DEA model to analyze the efficiency of fixed assets investment in steel industry in China based on the perspective of input factors. At last, with the analysis of the influencing factors, the paper points out the exited problems in the iron and steel industry. It can help the iron and steel companies to recognize their own shortcoming in the fixed assets investment efficiency. Then they will try to find and improve their management in fixed assets investment. All in all, it is of great guiding significance to the small and medium investors to make reasonable investment in the steel industry.There are basically two shortcomings in the paper. Firstly, due to the lack of reference literature about the input efficiency, it may cause the theoretical analysis is not comprehensive. The second is that it did not take a separate calculation on the scale efficiency and pure technical efficiency. |
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