Research On The Financial Performance Of The Local Retail Chains

In the development process, not only China's domestic retail chains rise rapidly, but also internationally renowned transnational chain retail enterprises like Wal-Mart, Carrefour and Metro have settled in China, making the industry a highly competitive place. However,the fact that in such a highly competitive market environment, we have to face that the capability of multinational retail chains has been significantly superior to our local retail chains. One of the indicators is that the financial performance of multinational retail chains is better than our local retail chains. This thesis starts with this particular phenomenon,firstly compares the financial leverage and operating leverage of the multinational retail chains and domestic retail chains respectively. By analyzing the data and clues, the thesis expands further discussion and demonstration, then illustrates the issues that our local retail chains should pay attention to in the development process and finally it will put forward relevant suggestions.Based on the study, the following process is carried out:takes our retail chains listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange for the study, introducing the increasingly competitive background of China's chain retail industry, as well as the theoretical and practical significance of this research topic. By analyzing domestic and foreign theories, this thesis reviews the factors affecting financial performance through descriptive statistical analysis modes, from horizontal and vertical perspective analyzes retail chains' solvency, operating capacity and profitability. Then, using factor analysis to reduce dimensionality, figuring out the financial performance composite score of listed retail chain companies from 2010 to 2014. Then, respectively, the thesis uses operating leverage and financial leverage as the dependent variable, the financial performance as scalar, to establish regression model, by way of empirical analysis discusses the correlation between these factors and corporate financial performance. Additionally, this thesis takes the example of Yonghui supermarket, to compare with Wal-Mart, finding out the differences between solvency, operating capacity, profitability, financial leverage and operating leverage between the two, pointing out the problems of retail chain industry, and puts forward feasible suggestions. Finally, this thesis makes summary and outlook.