Data Envelopment Analysis Of Efficiency Change Of Chinese Home Appliance Manufacturers Due To The Rural Appliance Rebate Program

The domestic manufacturing has excessively dependent on the export trading.The 2008 financial crisis has led to a dramatic decrease in the export trading and slowed down the development of the domestic appliance industry.As stimulating domestic demand is around the corner,the state has adopted a policy of the Rural Appliance Rebate Program(RAR)in 2007.Now the policy has made remarkable achievements.As of the end of December 2012,300 million units of home appliances were sold during the policy,and it achieved a sale of more than 700 billion RMB and had a subsidy to every rural family for average of nearly 400 RMB.While the RAR program's positive effects on macro economics have been well documented,the impacts of such a governmental subsidy program on the companies and the industry are unknown.Based on this background,in order to analysis the efficiency changes on the home appliance manufacturing under the RAR program's effect,and provide suggestions on the subsequent policy,I conduct independent research mainly from the following several aspects.First of all,this thesis selects 15 listed enterprises which took part in the RAR program as the research objects.In order to analysis the trend of efficiency changes,select the data from 2005 to 2012.Secondly,based on the study and understanding of data envelopment analysis(DEA),the types of products and assets in different home appliance companies may vary significantly.Specifically,the input factors include the total asset value,number of employees,and total operating cost.The output factors include the rate of return on total assets,net cash flow from operating activities per share,total operating income(yuan),and total assets turnover.Then,preliminary judgment of efficiency trend before and after the RAR program is shown through descriptive statistics and significant test of the efficiency change through the paired sample t test shows that the scale efficiency of the enterprises are declined after the RAR program.In order to find the main factors that affect the efficiency change,this paper uses principal component analysis(PCA),two principal components are extracted from the input and output factors.After that multivariate regression analysis is used to analysis the impacts of the principal components on the scale efficiency,finding out that the smaller,the better enterprise financial performance,the higher the scale efficiency.Finally,in order to make up for the shortcoming of static CCR and BCC model,using the Malmquist productivity index to dynamically analysis the efficiency of home appliance enterprise.Based on the results,eleven out of fifteen studied companies whose total factor productivity change(Tfpch)after joining the RAR program are lower than those before joining the RAR program.It is also found that twelve out of fifteen companies whose technical efficiency change(Effch)after joining the RAR program are lower than that before joining the RAR program.Similarly,eleven out of fifteen companies whose technical change(Techch)after joining the RAR program are lower than that before joining the RAR program.The significant test through the paired sample t test shows that won the bid are counterproductive for total factor productivity change and technical change.