Research On Performance Evaluation Of Listed Companies In Anhui Province Based On Factor Analysis

Listed companies as good corporate representatives have strong market competitiveness and profitability in the industry. Their development plays an important role on the prosperity of the region’s economic development, the number and size of listed companies also represent the economic level of the region to some extent. Therefore, the performance analysis of a region of listed companies is particularly important. Business managers can understand their business situation, identify shortcomings and improve the management level through performance evaluation. The performance analysis can provide a reference for investors to make rational investment. It also can provide a way for policy makers which can reflect the operating status of listed companies in their jurisdiction way.This paper based on the theoretical analysis of domestic and foreign companies on the performance evaluation. At first, comparing data analysis a decade of annual reports of listed companies of Anhui province, we find that the number of listed companies in Anhui Province increased year by year, industry distribution areas involved more than twenty, the total value of the stock market showed a gradual upward trend, the total funds raised has increased steadily each year, but listed companies still have some problems, such as uneven geographical distribution and the small proportion of tertiary industry listed companies. Therefore, in accordance with its own characteristics, Anhui needs to take targeted measures to adjust and upgrad its industrial structure, and improve the industrial structure optimization level.And then, we make 76 listed companies in Anhui as total sample, and selecte 11 financial indicators to establish operating performance evaluation system which include Total assets profit margin, Main business profit margin, Cost margin, Operating margin. Current Ratio, Quick Ratio, Cash Ratio, Main business revenue growth, Total asset growth, Total asset turnover, Current Assets Turnover. Then we use SPSS 17.0 software tool to establish measurement model and factor analysis, we can obtain factor scores and rankings of 76 listed companies in Anhui. According to the result, we compare and analysis respectively in five areas which include corporate profitability, solvency, operational capability, development capacity and the overall performance, we can get the conclusion that the ranking of comprehensive performance has a strong correlation with scores of profitability, excellent development ability can contribute to improve corporate performance, good corporate operations and solvency help stable development of companies, and different industries have different trends in performance.At last, according the characteristics of regional economic development in Anhui, combined with the results of the performance evaluation of listed companies in Anhui Province, we can put forward five policy recommendations of the development of listed companies in Anhui Province. One is to seize resources and increase efforts to support the leading listed companies. Two is to make professional management as guide strategy. Three is to accelerate technological progress and promote enterprise development. Four is to adjust the industrial structure and achieve industrial upgrading. Five is to strengthen the market system and standardize the governance structure of listed companies.