An Empirical Research On Financial Competitiveness Of Listed Companies In Aluminum Industry

Since the reform and opening up, China has adopted the policy of giving priority to develop the aluminum industry in the non-ferrous metals industry. The rapid development of the aluminum industry has made China the world’s largest aluminum producer and consumer, with an industrial system of reasonable layout and complete industrial chain. However, problems including excess production capacity and depressed price, caused by the current macroeconomic environment, are hindering the healthy development of the aluminum industry. The government has, in the industrial policies and planning, paid most attention to conserving energy and reducing emissions, supporting the environmentally-friendly enterprises and eliminating the opposite ones, and accelerating the industry transformation in the development. Reasons of all aspects lead to intensifying competition inside the industry. Therefore, it is crucial for aluminum enterprises to focus on how to step up financial competitiveness to support their competitive strategies, which has strong practical significance for enhancing the overall competitiveness of China’s aluminum industry.Based on financial competitiveness, the author has selected 20 domestic listed companies in the aluminum industry for empirical study. First, the author lists researches, home and abroad, on enterprise competitiveness and financial competitiveness, defines the concept and connotation of financial competitiveness of listed companies in the aluminum industry and further studies the formation mechanism and evaluation methods of financial competitiveness. Second, the author proposes that an appropriate evaluation system for financial competitiveness of listed companies in the aluminum industry should be established, with factor analysis as the evaluating method, in accordance with the general situation and competitive environment of the industry. Third, empirical studies are conducted on financial competitiveness of listed companies in the aluminum industry.Here are what the analysis results suggest. First, the majority of listed companies in the aluminum industry are faced with an unreasonable asset structure and great financial risks. Besides, fund shortage is the leading cause of the declining financial competitiveness. What’s more, operation capacity plays a key role in financial competitiveness. The last part of the paper includes suggestions on how to improve financial competitiveness of listed companies in the aluminum industry, such as better financial risk management, sufficient funds, better management of main business and developing financial strategies in a reasonable way.