BYD's Financial Performance Evaluation Based On Stakeholder Theory

With the development of economic globalization and specialization of production and management,the financial performance of enterprises is more closely related to multiple stakeholders.With the development of stakeholder theory,more systematic and advanced enterprise management has attracted wide attention in Europe and America.At present,Chinese enterprises are facing the challenge of globalization competition,stakeholder demand challenge and performance breakthrough challenge.BYD,as the leading enterprise in China's automobile industry,also has a leading position in the fields of electronic product accessories,new energy product development and new energy automobile.In recent years,with the expansion of the global automobile industry,the pressure of competition at home and abroad,the rising of the cost of automobile manufacturing,the growth rate of BYD has been significantly reduced compared with the previous years.The BYD needs to meet the interests of different interests to maintain good financial performance.Therefore,the factor analysis method is based on the benefit phase.After setting up the financial evaluation system,we study how BYD stakeholders can improve their financial performance.Based on the stakeholder theory,taking BYD as an example,this paper introduces the basic situation of BYD,on the basis of combing the current situation of automobile manufacturing industry,using the longitudinal analysis of financial indicators,to the solvency,operating capacity,profitability of BYD.Based on the stakeholder theory,the financial performance evaluation system is constructed by selecting the relevant financial indicators,and the main factors are extracted by factor analysis method,and the financial performance of each year is analyzed by comprehensive ranking.This paper studies the influence of different stakeholders on the financial performance of enterprises.The results show that the employee and customer indicators of BYD have great influence on the financial performance of the company.The contribution of social and government indicators to firm performance is not significant,while other stakeholders,such as creditors,shareholders and suppliers,have a large but unstable impact on firm performance.Therefore,BYD needs to improve its cost management system to reduce production costs,to increase the control of debt service and cash flow risks,and to enhance its ability to pay back accounts receivable in order to ensure its ability to raise funds and repay debt.At the same time,we need to upgrade the products to improve the sales performance and support the development of the whole industry,especially the new energy industry.