The Operational Efficiency Evaluation Of China’s Listed Feed Companies Based On DEA Method

The feed industry is most industrialized industry in the agricultural field of our country. It is an important linker to contact livestock feeding, the planting industry, farming products processing industry and other industries, thus play a pivotal position in the agricultural development and the life of our people, by the end of2011, there had been15354feed companies in our country, the output of feed products amounted to181million tons, the total output value of the feed industry reached634.8billion, becoming the largest in scale around the world.As leaders in the field--listed feed companies, despite of the small proportion feed enterprises accounts for in the field, through years of development, the companies have formed a certain scale, and most of the listed feed companies have strong power in the industry and their management and development are directly related to the development and progressing of the feed industry.Operational efficiency reflects the operational level of the enterprise and is a critical factor for enterprise survival and further development. With feed market in our country entering into an increasingly competitive era of meager profit.in order to remain invincible in the fierce market, feed enterprises have to constantly improve their operational efficiency and their management style. Based on the research of management efficiency of the listed feed factories, we can find out the problems, thus to help enterprises understand the situation they are faced, at the same time, to provide measures in improving operational efficiency.In addition, the current research of the feed industry and the relative enterprises is mainly qualitative research about present situation, the current development,the trend and specific issues in the theoretical circle, and the quantitative research of the operational efficiency evaluation for the feed enterprise is still blank. Therefore, study on the operational productivity in China if of great practical value nowadays.This paper firstly summarized the research literature of efficiency evaluation in and out of our country and the relevant theoretical knowledge in the operation efficiency evaluation of enterprises.Then, with the characteristics of the listed feed companies into consideration, through the enterprises management knowledge and DEA method, the appropriate decision-making unit (DMU) is screened, and also a corresponding input and output indicator is established.Then the DEA method-CCR model and BCC model are used to evaluate DEA for operational efficiency(technical efficiency, pure technical efficiency and scale efficiency) of the listed feed companies in China during2008to2011years.Furthermore,this article has carried on the comparative analysis of technical efficiency, pure technical efficiency and scale efficiency of the enterprises in the same year from the horizontal angle, and from the vertical Angle, comparative analysis is made to see variations in pure technical efficiency and scale efficiency for these enterprises in different years.Finally, this article made recommendations on how to promote the operation efficiency of the listed feed enterprise.The full text is divided into five chapters, the specific content of each chapter is summarized as follows:The first chapter is introduction.This chapter describes the research background and the value of this article, and the research methods and framework.The second chapter is theoretical foundation and literature review. This chapter firstly summarized the concept of efficiency and evaluation methods, at the same time introduced the DEA method, and then integrate domestic and foreign literature of the efficiency evaluation,as well as literature of feed industry in China has carried on the integration, through this, we get a clear understanding about the value of operational efficiency evaluation of the feed enterprises in our country.The third chapter arechoosing the input-output index of listed feed business running.this chapter first describes the application procedure of DEA method, and then according to this order, select the sample, index, model analysis, lay a good foundation for the next chapter.The fourth chapter is the empirical analysis of Evaluating operational efficiency of the listed feed enterprises in our country. First, the DEA model is used to get the operating efficiency(technical efficiency, scale efficiency and pure technical efficiency) fromthe panel data of22listed feed enterprises in china. Then, on this basis, horizontal and vertical comparative analysis of the efficiency are given.The fifth part is conclusion and suggestion.The empirical results of the fourth chapter are summarized, which shows that operating efficiency levelof the listed feed enterprises is low in general in our country, and corresponding suggestions and improvement measuresare put forward on this basis.The innovation of this paper are as follows:Through seeking and sorting literature research, we found that there were more theoretical research of feed enterprises, but mostly are qualitative research focuing on specific problems and Suggestions in aspects of the present situation of the industry development and development trend, the present situation, management characteristics, while the analysis of the operational efficiency evaluation of the listed feed enterprises is still very few, so this paper can make up for this aspect research in some extent.The theoretical cycle tend to focus on financial indexes for input-output indexes used in DEA model. but non-financial indicators is rare, at the same time, the measure standard of output indicators are generally one’s primary business, and the distinctive business income are rarely used as a measurement standard.Thus, the output index of feed industry used in this paper can better reflect the characteristics of the industry.The deficiency of this article:The deficiency of this paper lies in the small sample quantity. At the end of2011, there were more than15000feed enterprises in our country, only22listed feed companies are chosen, the quantity of sample is not sufficient.The main reason is that the data of the listed enterprises is easy to collect, while data of the private enterprises is difficult to obtain. Two, in view of the limited theoretical level of the author and do not feed enterprises work experience, has the complete understanding and expression of feed enterprises still exist deficiencies in. So I hope in the future study and work, to further research on this topic, using other methods (such as the analytic hierarchy process), from a different perspective on the listed feed enterprises operating efficiency analysis and evaluation.