Research On The Evaluation Of Sino-Foreign Joint Venture Listed Companies’ Financial Performance

With the development of global economic integration and the relaxing of Chinese foreign policy, sino-foreign joint venture listed companies have become an important part of Chinese economy. But in recent years, the failure rate of sino-foreign joint venture listed companies is higher and higher, and one of the main reasons is that the financial performance evaluation is poor. Therefore, how to scientifically and accurately make the evaluation of sino-foreign joint venture listed companies’ financial performance becomes the researching question of this paper. It not only can improve the effectiveness of evaluation results, but also can find out the fundamental financial performance problems and put forward realistic performance improving strategies, contributing meager strength to the development of sino-foreign joint venture listed companies.This paper on the basis of literature research, combined with the influence factors of financial performance of sino-foreign joint venture listed companies and index selection principle, we build the evaluation index system of sino-foreign joint venture listed companies’financial performance from five dimensions of cash flow ability, operation ability, profit ability, debt paying ability and growth ability. According the financial evaluation index system, we select thirty-one sino-foreign joint venture listed companies listed in Shanghai and Shenzhen more than three years as samples. Firstly, we use factor analysis method and entropy value method to make the overall evaluation of samples’financial performance. Secondly, we make industry division of samples, choose the most representative three industries and make the comparative analysis of those comprehensive scores and common factor scores. The two studies found that:(1)the overall financial performance of samples is not ideal, and the biggest affection of samples’financial performance is debt paying ability, profit ability, operation ability, growth ability and cash flow ability. (2) In the three industries, financial performance level and the debt paying ability as follows:machinery and textile manufacturing, computer and electronic components manufacturing, metal and non-metal manufacturing. The abilities of operating capacity and cash flowing are strong in metal and non-metal manufacturing, and weak in machinery and textile manufacturing. The profiting ability are strong in machinery and textile manufacturing, and weak in computer and electronic components manufacturing.The growth ability are strong in computer and electronic components manufacturing, and weak in metal and non-metal manufacturing. Finally, according to the results of empirical research, we put forward the improving strategies of financial performance form government level and enterprise level, hoping to guide the sustainable development of sino-foreign joint venture listed companies.