Research On Performance Evaluation Of Listed Real Estate Companies Based On Entropy Weight TOPSIS Method

After the reform and opening up,the rapid development of the market economy and the continuous advancement of urban integration,the real estate industry has gradually evolved from the golden decade of past glorious prosperity to a new stage of exploration and transformation of long-term mechanisms.In order to reduce the existing inventory of real estate and promote the sustainable and healthy development of the real estate industry,the central economic work conference held at the end of 2015 proposed the supply-side structural reform for the first time,and the real estate industry officially entered the Xinghai journey of comprehensive reform.In 2016-2017,the overall destocking effect of the real estate industry was obvious,and the effect of residential destocking was particularly significant.Local governments also issued a number of policies to benefit the people.The real estate industry is one of the important industries that constitute part of China’s GDP growth.On the micro level,it is closely connected with the daily life of the residents;macroscopically it is highly correlated with many industries,and at the same time it is regarded as the vane of the national economy and occupying a very important field of the national economy.Since the development of the real estate industry has a strong influence on the national economy,it is necessary to implement performance evaluation of real estate enterprises in China.Based on the theory of corporate performance and the existing research foundation,this paper selects 106 Shanghai-Shenzhen A-share listed real estate companies as the research object,and comprehensively applies the entropy weight method and TOPSIS method(approaching the ideal solution ranking method)to the selected sample listed real estate.The company’s business performance in 2015-2017 was evaluated and compared.Firstly,by analyzing the characteristics of listed real estate companies,the design evaluation index selection principle,and appropriate and necessary corrections to the actual selected indicators,including profitability indicators,solvency indicators,operational capability indicators,growth capacity indicators and cash flows.The index of the performance evaluation index of listed real estate companies,including the index,and the standardization of the data;secondly,the entropy weight method is used to calculate the objective weight coefficient of each performance evaluation index,and the TOPSIS method is used to obtain each listed real estate company.The overall business performance evaluation results are used to evaluate the sample listed real estate companies;finally,the output results are compared horizontally and time series trend analysis.By evaluating the operating performance of 106 listed real estate companies in Shenzhen and Shanghai,the following conclusions can be drawn: Based on the data of the 2015-2017 operating performance of the listed real estate companies,the average score of the business performance scores is calculated by the progressive average method.Then calculate the five classification standard values,that is,excellent value,good value,average value,lower value,and difference value.From the first step to the fifth step,the business performance level decreases in turn,and the average sample level is in the middle.In the low position,it can be seen that the current overall operating performance of listed real estate companies in China is moderately low,and there is a certain gap between the comprehensive strengths of each sample company;the objective weights of various indicators in each dimension are calculated according to the entropy weight method.It is found that the earnings per share account for the highest weight,that is,the operating performance level of each sample company is most affected by the earnings per share indicator;the overall profit level of each listed real estate company’s operating performance is slowly rising during 2015-2017,but the overall performance of solvency Poor,the growth rate of each company is relatively slow.The above conclusions reflect that China’s real estate industry still has many problems and faces greater challenges.From the enterprise level,it proposes to grasp the real estate policy orientation,improve the management model,avoid debt risks,build brand advantages,balance internal performance,narrow industry differences and actively explore.The strategic transformation of real estate enterprises has important significance for the development of China’s real estate industry.