A Study On Production Efficiency And Influence Factors Of Non-ferrous Metals Industry Listed Companies

Non-ferrous metals were all non-renewable resources which resulted in its important position. With the scientific and technological progress, the demand for non-ferrous metals became more intense, especially the rare earth resources for high-tech. With non-ferrous metal listed companies’the growing number and quality improvement, China’s non-ferrous metal industry had achieved a certain degree of development. Through the results of production efficiency and analysis of influencing factors, it proposed some suggestions in order to solve the industry practical problems.This paper, based on data in the Annual Report of the2006-2010listed companies of non-ferrous metal industry, applied DEA (Data Envelopment Analysis) to calculate the level of production efficiency of42non-ferrous companies. The output indicator was operating income, and the input indexes were the operating cost, business tax and surcharges, overhead expenses and sales charges. It found that the production efficiency of non-ferrous metals listed companies in China was generally low, and lower efficiency in the two years2007and2008. for the international economic environment change. There were the three types of efficiency:technical efficiency, pure technical efficiency and scale efficiency, derived from DEA model, and technical efficiency was the total technical efficiency, also named production efficiency in this study. The scale efficiency played more important role than the pure technical efficiency in China’s non-ferrous metals industry. In general, the companies, having higher production efficiency, started earlier and developed very well, and some less efficient companies newly listed, mostly in the stage of decreasing returns to scale.The latter in this paper applied the panel data model to factors measured that affected production efficiency. The empirical result showed that the production efficiency of non-ferrous metals industry listed companies had a positive correlation with its scale level of management and quality of staff, the input of labor was not significant for production efficiency, and the ability of technological innovation in this study on the impact of the production efficiency was not obvious. Although the level of the size was consistent with production efficiency, it did not simply say that the larger size absolutely brought the higher efficiency. The companies with returns to scale in non-optimal state in the first half of the study were more than in optimal state. The companies with decreasing returns to scale were not few, but in the latter part, the representative indicator of scale level was net fixed asset. If the fixed assets included advanced technology, its production efficiency would be higher.