Research On Financing Efficiency And Influencing Factors Of Defense Industry Companies

The financing problem of defense industry companies is an important factor restricting the modernization of China's defense industry.With the deepening of reform of national defense and army as well as state-owned enterprises,the financing methods of national defense industry companies also have great changes.Reform and development require the defense industry companies to get rid of the traditional ways of financing gradually,but to rely on capital market and diversified financing methods to alleviate the difficult problem of finance.Under this background,it is of great research significance to study the financing efficiency and its influencing factors of defense industry companies,for improving the financing ability,the financing situation and promoting the modernization development of China's defense industry companies.This paper evaluates the financing efficiency of China's 79 listed defense industry companies from 2011 to 2018,and studies the factors which influence the financing efficiency.Firstly,this paper clarifies the real financing situation of China's defense industry companies and analyzes the financing difficulties and the reasons that cause the problems.Then,using DEA(Date Envelopment Analysis)model and DEA-Malmquist model to evaluate and analyze the financing efficiency from the static and dynamic perspectives.This paper compares the financing efficiency differences about the financing efficiency decomposition,industry classification and companies' location,through this comprehensive comparison and analysis to find out the key points that restrict the improvement of financing efficiency.Finally,using Tobit model to empirically analyze the influence of the factors on financing efficiency.And the main influence factors are chose from the enterprise attributes,policy environment and management situation of China's defence industry companies.The results show that the financing efficiency of China's defense industry companies is generally poor,but it is improving year by year.From the horizontal comparison and analysis of financing efficiency of different companies,the scale efficiency of financing is basically achieved,while the pure technical efficiency of financing is low,which needs to be further improved.From the vertical comparison and analysis of financing efficiency of companies,the technical efficiency of financinghas been improved greatly,while the financing's technological progress has changed little or even declined.The final result shows that shareholding ratio of the largest shareholder,the ratio of shareholders' equity to debt,growth rate of defense spending,cost-to-income ratio and turnover rate of total assets are significantly related to the financing efficiency of defense industry companies.These factors influence the financing efficiency of China's defense industry companies deeply.The key points for China's defense industry companies to improve the financing efficiency are to improve the capital turnover ability and reduce the high cost investment in production and management,and expand diversified financing channels and make full use of equity financing mechanisms.