An Empirical Study On The Efficiency Of Chinese Water Companies Based On The Three-stage DEA Model

Urban water system is one of the most important infrastructure in moderm society.Urbanization brings about both opportunities and challenges for water companies.Urbanization brings high demand of water and sewage treatment.Investment of water supply pipeline,sewage treatment equipment will increase largely.Only relying on the traditional mode of operating,water companies can't deal.As the public envirornmental awareness and the shortage of water increasing,the efficiency of water companies cause widespread concern.The study of efficiency will improve the efficiency of water companies individual and industry.This paper introduce the concept and characteristics of water industry and literature in the efficiency and influence factors of water companies.Based on the three-stage DEA and Tobit model,it select 25 water companies as an example,and studies the overall efficiency and influencing factors of water industry.The first part use the three stage DEA model.The paper use SFA regression method to adjust input variables and eliminate environmental factors and random factors in TE,PTE and SE.In the second part,Tobit model is used to study the influences of variables,such as equity structure,market share,equity concentration,proportion of technical personnel,capital turnover,return on assets,on water enterprise's TE and PTE.Through the empirical study,it proves that SE is higher than PTE.The cause of the inefficient is pure technical inefficiency.State-owned shares ratio has a negative impact on TE and PTE of water enterprises.Equity concentration,proportion of technical personnel,capital turnover have a positive effect on PTE.Capital per worker have significant positive impact on TE and PTE.Therefore,the paper put forward the following suggestions:Promote the balanced development of water enterprises between regions;encourage the development of reclaimed water industry;Water companies should introduce foreign capital and private capital to improve efficiency.Companies should ensure the technology investment and make use of technical personnel's innovation ability,which will improve the PTE.Enterprises should try to increase capital turnover.