The Study On Chinese Military Listed Companies' Operating Efficiency And Its Influencing Factors

The civil-military integration is an important guiding strategy of the reform in China's national defense science and technology industry,under which underground,the Military industrial enterprises should lay more emphasis on the improvement of economic benefits.This paper reviews native and oversea relative research on operating efficiency and analyses the characteristics of the military industry.After that,DEA model is used to study operating efficiency of38 China's military listed companies during the period of 2014-2016.Based on the characteristics of the military industry,total assets,main business cost and staff salaries have been chosen as input indicators,main business income,earnings per share and net profit after deducting non recurrent gains and losses have been chosen as output indicators of DEA model.Using DEAP software to analyze the efficiency index which includes technical efficiency,pure technical efficiency,scale efficiency and return of scale.Malmquist index model is applied to made dynamic evaluation for the company's management efficiency.The results show that: the operating efficiency of military listed company within three years firstly came down and then rise.There is large disparity between individuals;the pure technical efficiency of samples is high which indicates that military companies have high level management.However,they have poor performance of scale efficiency,the output didn't match the scale of company and the returns to scale are decreasing.Total factor production efficiency had been increasing which mainly benefited from the progress and innovation of production technology during the study period.After the evaluation on efficiency of the military listed company,comparisons of different systems of companies are made and the results show that the operating efficiency of weapon and photoelectric system is relatively high while the aviation system companies rank the last.The results of regional comparisons show that the efficiency of southwest regional military listed companies is the highest while the middle region ranks the last.Moreover,Private enterprises involved in military manufacture have higher efficiency than state-owned military listed companies.Where after that the paper sets up analysis frame built by corporate governance,firm operation and macroscopic surrounding.With this analysis frame and literature reviews on efficiency factors,3efficiency factors and 5 significant variables are selected.Then,the paper makes describing statistic and correlated statistic.Entity fixed effects regression model is applied for the verification for the chosen factors.Through the empirical research we found: Ownership concentration and statecontrolling have no significant impact on the operating efficiency of military listed companies.Company size and R&D capabilities have a positive impact on the operating efficiency of military listed companies.Government subsidies have a weak negative effects on operating efficiency of military listed companies.Finally,the paper combines the company size and the comprehensive efficiency of the military listed companies and find out a company which both has a large asset scale and high efficiency called Haige as a benchmarking enterprise,follow which we make a case analysis on Haige.At the end of the paper,we put forward the following suggestions in order to improve the operating efficiency:increase R & D investment,promote technological innovation,improve the core competitiveness;promote the quality of asset injection and the integration of resources,enhance economies benefits of scale;establish and optimize enterprise management system.