Research On The Evaluation Of Financial Performance In China' Electric Household Appliance Based On Stakeholders' Perspectives

Since 1960s, the theory of stakeholders rises rapidly and becomes to get widespread attention in academia field and business community. The view that stakeholders have a significant impact on the business goals and the enterprises must carefully consider the demands on stakeholders' interest in business courses has gradually received academic attention. However, the application of the above-mentioned point of view can not be optimistic in business management practice. The management strategy based on stakeholders did not get the real attention and there is still considerable amount of actions and events to damage the interests of stakeholders, such as "Toyota door" and so on, which will greatly affect the operating results.The reasons for these problems can be attributed to uncombined the stakeholders and enterprises' operating, and also the research on the relationship between them is not deep enough. Because the business effect is mainly reflected by its financial performance, therefore, the research on enterprises' financial performance is of vital importance in guiding the business to development continuously, rapidly and healthful.Incorporating the insights of the resource dependence theory, the corporate contract theory, the prospect theory and the input-output theory, this paper analyzes the internal mechanism how stakeholders affect financial performance in China' electric household appliance industry. It concludes that, the relationship between stakeholders is the key to influence financial performance in China' electric household appliance industry. Then, an empirical study on Chinese listed companies is conducted based on the panel data model to verify the correctness of the mechanism revealed. Finally, based on the relationship between stakeholders is the key variables that affects the financial performance of China's electric household appliance industry, this article uses DEA model which makes financial performance indicators as output variables and the relationship between stakeholders indicators as into variables to study the input-output efficiency of the relationship between stakeholders and enterprises' financial performance in electric household appliance industry. Also, this article gives feasible countermeasures and suggestions for the listed companies of China' electric household appliance industry to improve their financial performances.This study has kind of direction, predictability and innovation and also is valuable for the listed companies of electric household appliance industry in China to improve their operational efficiency to be more competitive. This article also hopes to provide reference for the future research to promote the development of the stakeholder theory and its application in China's enterprise management.