The Relationship Between Asset Frontier And Financial Performance Of Railway Transport Firms

Railway plays an important part in national economy. Although the reform of railway in China has made a great progress, it falls behind other monoplistic industries, such as tele-communication, electric power, airline. So, many national schlors carry out reseach about railway from different angels and hope to find out efficient ways to improve its operational efficiency.Based on others scholars's research, this paper will evaluate operational efficiency of railway transport firms from the relationship between asset frontier and financial performance.First of all, this paper introduces similar concepts to asset frontier and evaluating methods of financial performance. Then it makes a clear definition of asset frontier and financial performance in this paper. At the same time, it states in detail the theorical research about railway of other scholars, and points out the difference between this paper and other research.Then the paper introduces DEA mode as the basic research mode of this paper, and its basic thoughts, practical use, advantages and theorical formulas. It uses asset frontier as inputs, financial performance as outputs, and choose datas from 2003-2005. Finally, it evaluates the operational efficiency of railway transport firms according to the mode results.