Research On Financial Performance Evaluation Of Transforming Financing Platform Company

With the continuous expansion of the financial gap of local governments at all levels,from 2008,the financing platform companies across the country have grown rapidly and become the main force of local government financing and local economic construction.However,with the deepening of tax sharing reform and policy changes,their development transformation has also experienced many changes.Because the existence of financing platform company makes up for the fund demand of public welfare project which is hard to be met by local financial funds,its transformation development and existing deficiencies are highly valued by the state.In May 2017,China's sovereign credit rating was lowered from aa3 to A1 by Moody's,an international credit rating agency.Although China's Ministry of Finance denied Moody's claim that "the debt growth of local government financing platform companies,state-owned enterprises and other companies will increase the government's contingent debt".However,the event further promoted the market-oriented transformation of financing platform companies and clarified their relationship with government debt.As a unique type of enterprise in China,financing platform company used to be the main financing body of local governments at all levels,and shouldered the social responsibility of public welfare urban construction projects,but its transformation essence is to gradually develop into an independent legal entity enterprise with independent operation.Government financing platform companies are obviously different from ordinary enterprises in organization management,operation mode,financing operation and other aspects.According to their characteristics,it is of great significance to establish a targeted and applicable financial performance evaluation system for their own operation and development,as well as to prevent the hidden debt risk of the government and the maintenance and appreciation of state-owned assets.However,although the financing platform company has the advantages of public welfare in the investment field and low project yield,it can reduce the financing cost through reasonable financing arrangement,and has long-term operation ability under the condition of signing a standardized principal-agent agreement with the government and ensuring the investment return.Especially in recent years,more and more financing platform companies make full use of convenient information channels and huge social resources close to local governments to seek transformation.In the process of continuous marketization,on the one hand,they can use the close ties with the government to obtain more advantageous resources to do business projects and gain profits;on the other hand,they can take on more social responsibilities for the construction of public welfare projects and feed the society back.At present,not only the lack of systematic research on the Chinese product of financing platform companies abroad,but also the domestic research mainly focuses on the risk and transformation necessity of financing platform companies,while the case study on the financial performance evaluation of transformation financing platform companies is relatively lacking.This paper mainly summarizes the historical process of local financing platform companies and the relevant characteristics of transformation and development in recent years,and comprehensively uses the relevant theories and scientific evaluation methods of financial performance research to explore the financial performance evaluation of China's transformation financing platform companies.This paper selects G company as the case study object,selects 15 specific financial indicators from five dimensions of profitability,operation ability,debt paying ability,development ability and public welfare ability,and constructs the financial performance evaluation index system.The objective weighting method entropy method is used to calculate the weight of each index and dimension in the system and evaluate the overall level of its financial performance.At the same time,combining with the actual case,the paper analyzes the influencing factors of the financial performance of each ability dimension,summarizes the evaluation results,and puts forward the rationalization suggestions for the optimization and improvement of the financial performance of the transformation financing platform company from the three aspects of the government's macro guidance,the financial institution supervision service and the enterprise's own operation and management.