A Study On Financing Efficiency Evaluation Of Listed Equipment Manufacturing Companies

Equipment manufacturing industry is the foundation industry of the national economy. China formally proposed to vigorously develop the equipment manufacturing industry in 1998. From then on, the equipment manufacturing industry has got much attention and support from the state and government. After years of development, equipment manufacturing industry has attained to a considerable scale. But the industry is still less competitive internationally. Equipment manufacturing industry is a combination of technology-intensive, labor-intensive and capital-intensive industry. And the capital investment is the foundation and support of technology and human resources. To achieve the financing efficiency is the premise and support to promote industry technical progress and production efficiency upgrade. Then how is the financing efficiency of equipment manufacturing industry? Does the financing adapt to the needs of equipment manufacturing developing?This paper focused on the financing efficiency, financing condition and capital allocation of China’s equipment manufacturing industry. Using CCR, BCC and super efficiency model of data envelopment analysis (DEA), this paper performed an empirical research on financing efficiency evaluation of 279 listed equipment manufacturing companies from 2010 to 2014. The result showed that the financing efficiency of China’s equipment manufacturing listed companies as a whole was very low and declined year by year, until slightly rebounded in 2014. The financing efficiency of the 2014 was decreased by about forty percent than in 2010. The market was flooded with a large number of non-efficient companies. Scale inefficiency was the direct cause of comprehensive inefficiency. Financing excess and insufficient existed at the same time. And financing insufficient was much more than financing excess. More than sixty percent of equipment manufacturing listed companies were in lack of funding. While only less than 5% of the companies were financing excessive. Financing insufficient had much greater impact on financing efficiency than financing excess. So financing insufficient was the main influence factor of financing inefficiency. This conclusion was applicable for the overall sample, industry subdivision samples, ownership subdivision samples and annual samples. Because of financing insufficient, China’s equipment manufacturing industry as a whole was financing inefficiency. State-owned enterprises’financing efficiency as a whole was better than that of private enterprises. But the gap was not significant. The low efficiency of private enterprises was also mainly come from lack of funding. Based on the conclusions above, this paper suggests that, to improve financing efficiency, China’s equipment manufacturing industry should speed up the industry structure adjustment and technology upgrade in order to improve the productivity, along with relieving the financing constraints and guiding funds to support technological innovation.