Characteristics Analysis Of Listed Companies In China’s Automobile Industry Based On Performance Evaluation

Automobile industry is the pillar industry in China, along with good prospects for development. The competition among motor companies becomes increasingly fierce. It is an effective way for motor companies to keep a foothold by observing the car company features which has good performance and analyzing the relationship between them, as well as learning those good performance companies. To reflect company performance more reasonably, this paper introduces a performance evaluation with multiple indexes. Based on the evaluation, we research the features of motor companies, so this study is useful for these companies to improve their performance, contributing to the healthy development of the industry. In addition to general features, we also consider the characteristics of automobile industry to focus two forms of competition, R&D and M&A when analyzing the features.We select automobile industry listed companies as research objects and select 54 vehicle and parts companies listed on Shanghai and Shenzhen stock exchange as samples. Firstly, we use factor analysis and multivariate evaluation indexes to analyze company performance. Secondly, we analyse company features from four aspects: capital structure, ownership structure, company size and the location, so as to observe differences between good performance companies and poor performance companies. Thirdly, on the basis of performance evaluation, we analyse the motor company features on the way of R&D and M&A.This paper draws the following conclusions. On the terms of general feature, the ownership structure and the company size have a positive relationship with the performance; the rate of assets and liabilities of the vehicle company has a negative relationship with the performance, but automobile parts firm has a positive relationship, there is no obvious relationship between company performance and controlling shareholders’ state-owned nature, the performance in the developed area is better. On the terms of competitive mode, the relationship between R&D costs and performance is positive, but the relationship between R&D expense ratio and performance is not significant. From sample data we only find that R&D cost of one year has a significant positive correlation with the lag period of corporate performance. Before and after the mergers and acquisitions, the firm performance shows a trend from decline to rise.Through the above company characteristics analysis based on performance evaluation, we can know the relationship between motor corporations and their performance and use it to enhance the performance.