Comprehensive Performance Evaluation of Listed Manufacturing Firms in China
DOI:
https://doi.org/10.31674/ijrtbt.2024.v08i03.001Abstract
This study aims to assess the level of comprehensive performance of listed manufacturing firms in China by constructing a comprehensive performance evaluation system that is applicable to these firms. The annual data of 1983 listed manufacturing firms in China's Shanghai and Shenzhen A-shares in the year 2023 are selected as the research samples. The comprehensive performance evaluation function of listed manufacturing firms is constructed by using principal component analysis and using this function to evaluate the firm's comprehensive performance. The results show that, firstly, the comprehensive performance level of China's listed manufacturing firms is still low. Only a very small number of firms exhibit very high performance, while the majority of firms' comprehensive performance scores are concentrated in the lower range. Secondly, the number and performance levels of Chinese manufacturing firms remain uneven and disparate. East China and South China are the two regions with the highest concentration of manufacturing firms in China. The comprehensive performance scores of firms in Southwest China and East China are positive, while those in South China, North China, Northeast China, and Northwest China are all negative. Thirdly, the comprehensive performance scores of firms with different factors show large differences. Chinese listed manufacturing firms are weak in terms of solvency, operating capability, and growth capability, while they are relatively strong in terms of profitability. Finally, the average scores of the factors in different regions show significant differences. The Southwest region has positive scores on the four dimensions of solvency, profitability, operational capability, and growth capability, indicating superior comprehensive performance. In contrast, the Northeast, North China, and Northwest regions have negative scores on three factors, indicating that these regions have significant deficiencies in comprehensive firm performance. Based on the above findings, four recommendations are made. Firstly, the overall performance level of manufacturing firms should be improved. Secondly, the performance gap between regions should be reduced. Thirdly, the solvency and operational capacity of firms should be strengthened. Finally, the balanced development of inter-regional factors should be actively promoted.
Keywords:
Factor Analysis, Listed Firms, Manufacturing, Performance EvaluationDownloads
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