The Research On The Financial Performance Evaluation Of Listed Companies Of Media Based On Factor Analysis

With highly rapid development of Internet and smart phones, various industries are changing, including the media industry that is also restructuring and integration. Besides, coupled with the promotion of government policy and fiscal assistance, media digitization and media mobility is propelled, and the market distribution is changing, and the new media which rely on the advantage of PC Internet and mobile Internet are becoming the protagonist of market to continuously integrate into people’s life, every industry and every professions. In such a period, investors are trying to look for the new opportunities from the rapid growth of media industry, and traditional media need to adjust the strategies and carry on the integration or develop new business so as to find the future direction under the situation. This paper carries out the research that is based on the financial performance of the listed companies to provide reference for stakeholders. It is expected that the empirical result can match with the real situation well.This paper is divided into the following sections. In the first part, the significance and content of this paper are described. Second, it reviews the related theories of financial performance evaluation, analyzes the advantages and disadvantages in every theory and also combs the related financial indicators when they are chosen. And then, the situation at this stage of the research and application are summarized and reviewed. Third, media industry is analyzed and its overall development and characteristics are explained. Subsequently, empirical indicators and methods to be carried out are selected and established, and ultimately determines 15 indicators out of five aspects including profitability, operation ability, solvency, future growth and cash flow, using factor analysis method of the objective weighting method to carry on the empirical analysis. In China’s A-share market’s 35 listed corporations in the media industry in 2014 as samples, financial analysis is carried out from a quantitative point of view. With SPSS and EXCEL software, the paper comes to evaluate the comprehensive scores of the financial performance of listed enterprises the domestic media in 2014. The last section is the conclusion and prospect.The research shows that financial performance and overall score is closer to reality. In 2014, the overall trend of the media industry is the rapid development of mobile Internet, and the majority growth of enterprises in the industry this year is due to a greater investment to mobile services and online games. On the other hand, most of the company’s profitability are in good condition, but only less than half of the company’s growth are well, which also confirms there is more and more integration in media companies in future driven by policy and the Internet and they will gradually centralize, so the results with the significance are not only in favor of investors to help them to make a more rational choice by understanding the relevant factors referring to investment, but also help the operators in the media industry to carry on a self-diagnosis by using the results, to find the problem and to learn from the advanced opponent to conduct their own adjustments in order to make a wise choice on the future direction of development. In the end, the paper makes a prospect for the makers of policy and companies in the industry.