Research On Financing Efficiency Of Companies In Chinese Steel Industry

Steel Industry is an important and basic industry of national economy in China, which has great relevant effect with construction, machinery, light industry, automobile, container, shipbuilding, railway, petrochemical industries. Steel Industry has play vital roles in economic development, finance, taxation, national defense, stability and employment. Therefore, all the countries across the world attach the importance to Steel Industry. In order to promote the healthy development of Steel Industry, State Development and Reform Commission specifically made Steel Industry Development Policy in 2005, and The State Council promulgated Steel Industry Restructure and Revitalization Plan in 2009.However, the concentration of Steel Industry decreases annually, which is against the objective of Steel Industry Policy. In this Financial Crisis, Steel Industry has been being affected seriously. Accumulated contradictions of extensive development in the long run become increasingly conspicuous. Therefore, research on financing efficiency of Steel Industry is theoretical and practical significant. This thesis is formed under this social and economic circumstance. How to improve the financing efficiency of Steel Industry is discussed from the perspective of fund integration, fund use and risk, which will be helpful to the development of Steel Industry.First of all, on the basis of the analysis to the various point of views on financing efficiency, the thesis defines the financing efficiency and analyzed the structure of financing efficiency. Secondly, the current financing efficiency of Steel Industry is theoretically analyzed in association with the characteristics of Steel Industry. Thirdly, on the basis of the theoretical research, the model of evaluation to financing efficiency of Steel Industry is designed in combination with other researches on financing efficiency. Fourthly, financing efficiency of Steel Industry is evaluated and then its result is analyzed in accordance with the model of evaluation and data of listed company. Fifthly, some conclusions concerned with financing efficiency of Steel Industry are drawn. The thesis offers solutions and some possible improvements are listed.The conclusion and main innovative points can be summarized on the below:Firstly, financing efficiency is defined. After researching the concept and explanation of financing efficiency in related materials, the author analyzes the advantages and the disadvantages of various point of views. The financing risk is introduced into the definition of financing efficiency, which is able to reflect the sound connotation of financing efficiency. Financing efficiency is a part of microeconomic efficiency, which takes financing risk into consideration, and is the fund financing capability and the function realized, including fund financing efficiency, fund use efficiency and financing risk.Secondly, the theoretical analysis frame of financing efficiency of Steel Industry is formed. Current financing efficiency of Steel Industry is theoretically analyzed from three aspects: fund financing efficiency, fund use efficiency and financing risk. The conclusion is drawn that the cost of financing efficiency of Steel Industry tends to rise; financing risk tends to increase; and business efficiency tends to decrease.Thirdly, Entropy method is first brought into the evaluation of financing efficiency of Steel Industry, and then the result will be much more objective. Financing efficiency is mainly measured and evaluated by Fuzzy Evaluation and Level Analysis, which is more subjective. Entropy method is strict mathematical reasoning, and its evaluation will be much more objective. Entropy method is used to carry out the empirical analysis to the financing efficiency of Steel Industry. Some meaningful conclusions are drawn: financing efficiency of Steel Industry tends to decrease; financing efficiency of rolling and processing industry is higher than that of ferroalloy smelting industry; financing efficiency of companies(ST) is lower than that of listed companies.Fourthly, countermeasures and suggestions are provided from perspective of financing structure, technological innovation and conglomeration in accordance with the empirical conclusions.