The Analysis Of The Financing Efficiency For Power Generation Enterprise

Electric power industry is one of the leading industry of our national economy, which plays a very important role in promoting economic development and improving our livelihood. Since the national electric power system reform in 2002, the power generation industries gradually shift from a planned economic system monopoly to a competitive market economy system. However, the power assets true profit rate prediction ability is not strong, the degree of attention on the rational use of corporate funds and financing efficiency is not enough, there still exist a lot of problems during the development of power generation enterprises. With the continuous development of our country market economy system and financial market, financial efficiency is a considerable factor of improving the competitiveness of enterprises. The electric power industry is a typical capital intensive industry, its development requires a large amount of money. Therefore, the issue that how to improve the efficiency of power generation corporate finance and expand power generation financing channels and reduce the cost of power generation corporate finance has been a worthy strategy research topic for the financial manager and researcher.The paper consists of five parts. The first part introduces the significance of the financing efficiency of power generation enterprises, the research content and method. The second part introduces the basic theory of financing efficiency. The third part presents the current situation of China’s power industry development. The fourth part describes financing cost, capital allocation efficiency, risk ability and the efficiency of corporate governance four aspects for the empirical research. Using principal component analysis and entropy method, which draw the conclusion that financing efficiency of electric power enterprises is generally at a low level, and then analyze the reasons. The fifth part summarizes the research achievements and shortcomings, and puts forward some suggestions to improve financing efficiency for power generation enterprises.As the development of our country and the improvement of the financial system, the research on financing efficiency of power generation enterprise, which is valuable to enhance profitability and competitiveness.