Research On Evaluation Of Financial Governance Efficiency Of Listed Companies Of China Automobile Manufacturing Industry

In the past few years,encouraged by relevant policies under the environment of development,the automotive industry of our country enjoyed rapid growth.As a pillar industry of the national economy,the automotive industry has attracted much concern,especially about the development of the listed companies therein,whose financial governing efficiency has thus become a hotspot issue in relevant research as well.The efficiency of financial governance—the core of company governance—was of great significance to the development of the company.Currently,research on financial governance was found inadequate and was mainly focused on the governance structure;the research of the efficiency of financial governance was still premature.However,efficiency was the fundamental goal of financial governance.Therefore,to study financial governance,we have to look into the governance efficiency.In this paper,on the basis of literature related to evaluation of financial governance efficiency,the author first defined the concept of financial governance.Corporate financial governance referred to the standardization of corporate financial authority and arrangement of relevant activities by directors,supervisors and senior executives of the company so as to protect and maximize stakeholders' interests,realize corporate goals and improve the efficiency of corporate management.The enhancement of financial governance efficiency was the primary target of corporate managers.Through a study on other scholars' research results on financial governance efficiency in the automotive industry,it was noticed that scholars adopted various research methods.In this paper,through an evaluation of the balanced scorecard,DuPont analysis,financial factor analysis,regression analysis and other major efficiency evaluation methods,the author analyzed the advantages and shortcomings of these methods in the evaluation of financial governance efficiency.The comprehensive evaluation indicated that,within the area of efficiency evaluation,factor analysis and data envelopment analysis(DEA)were the methods more widely used.However,comparison between the two methods revealed their limitations in the analysis and evaluation of efficiency.The factor analysis method studied most of the information of all the variables through a small number of variables—the information removed during the process would inevitably lead to loss of information.DEA enjoyed great popularity among the scholars mainly because it wasn't limited to single input and single outputand didn't need people to give the weight.Yet this method was flawed as well—its high sensitivity to anomalous values would result in data instability,the processing of the same data with different methods would thus producing different results.With the circumstances above taken into consideration,in this paper,the author introduced the combined evaluation method,which integrated the data results obtained from factor analysis and DEA into a more objective ranking of efficiency for the efficiency evaluation of sample data.Based on previous research,the author referred to the data indicators adopted by the evaluation of efficiency of financial governance in the past in China and foreign countries.According to different characteristics of factor analysis and DEA in analysis and evaluation,the author chose the indicator system applicable to the corresponding analyzing method respectively.Based on characteristics of the factor analysis method,the author chose different indicators from 5 aspects of financial governance to build the data indicator system.Since the mathematical model of DEA was the input-output ratio,the employment of the same ratio indicator with factor analysis would in turn affect the results of DEA.Therefore,to ensure the objectivity and reasonableness of each method in the evaluation of financial governance efficiency,the author chose two sets of financial indicators and evaluated the financial governance efficiency of 22 listed companies in the automotive vehicle manufacturing industry from 2013 to 2017 with the two methods above respectively.The author then ranked the obtained two sets of evaluation indicators of financial governance efficiency.Correlation analysis with Spearman's rank correlation coefficient indicated a close correlation between the two evaluation methods;on such a basis,the author ranked the combined evaluation with the mean value method and further analyzed companies ranked top,bottom,those with successive growth and the representative ones,from which the author proposed advisory opinions on the improvement of corporate efficiency.This paper introduces the evaluation method combining factor analysis and DEA for measurement of the financial governance efficiency of listed companies.Different from the previous evaluation mode with DEA only,it was an innovative choice of method,which produced relatively satisfactory effects.It enriched relevant studies on the efficiency of financial governance,contributed to the objectivity of relevant literature about financial governance efficiency and served as a reference to the evaluation of financial efficiency in the vehicle manufacturing industry of our country.