Business Performance Evaluation On Listed Company

The listed company of China has developed accompanying with thereformation of the shareholding system since the mid80’s. Along with thequick-stepped economy development and the steady growth of the listed companyscale, the listed company has already become the fresh troops of the national economy.The standardization of stock market makes listed companies’ performance to be amain focus which attracts more attention from the shareholders, creditors,governmental departments, securities analysts and employees. And the correctly andequitably assessment of the listed companies’ performance have already become theconsensus shared by finance analysts. The difference among companies can be judgedby transverse comparison of the business performance, which may be useful tointernal administrative control, operation amelioration, harmonious development andfinancing competitiveness. And the business performance evaluation may contributeto the creation of a forewarning system and the decision-making of investor andorganization.At present, the deficiencies are still existed in the current business performanceevaluation system. First, the cash-flow and non-financial index are ignored in theestablishment of index system; second, the subjective weight method is lack ofobjectivity on the business performance assessment. Therefore, according to themotivation, meaning and development history of the listed company performanceevaluation, this dissertation draw a lesson from the main practice to listed company athome and abroad, combining the specialty of companies in China, then the primaryindicators are obtained based on the analysis of stock price. And the appropriatebalance between comprehensiveness and representative in the final evaluation indexsystem is obtained by introducing clustering analysis, nonparametric test, maximumuncorrelated, etc into the further selection for indexes. Meanwhile, in order to remedythe limitation of the one-single methods, an entropy weight fuzzy synthetic evaluationmethod is put forward in this article, which combining of objective weight andsubjective assessment, to evaluate the business performance of listed company.According to the efficient market hypothesis (EMH) and formation mechanismof stock price, the companies’ business performance can be represented by stock price.Therefore, by the lights of an contrast diagram among Shanghai composite index andthe tendency of corporate stocks, and the results from different evaluation system, wecan concluded that the listed companies’ operating performance can be evaluatescientifically and reasonably by using entropy weight fuzzy synthetic evaluationmethod, which is useful for managers to elude the operational risk, improvecompetitiveness and achieve the financing target.