Research On The Appraisal Of Finance At Enterprises Sponsored By Local Governments

As the economic stimulating policies have been implemented worldwide, theproblem of the government debt has attracted people’s attention worldwide. The financialrisk and solvency ability of the government are crucial in this issue, and thus should beregulated and supervised. The most obvious problem in the current situation of our localgovernment debt issue focus on the enterprises sponsored by local governments. It ismeaningful to make empirical research on these enterprises and try to assess their financialperformance on the possible financial distress problems.This article focuses on the current operating activity, financial leverage and financingactivity of the government sponsored enterprises nationwide, trying to analyze the currentsituations and risks that the governments are facing. This article is based on Entropy&TOPSIS combined method, incorporating local economic and other regional differences.We select the data from the latest2010financial statements and credit evaluating report,which would cover all the bond issuing government sponsored enterprises. The researchmethod is developed from the information Entropy theory, which exists in nature generally.The matrix would be used, and the programming in the financial software would beimplemented. Finally, we would try to explain the outcome, concluding the research resultand proposing the academic suggestion to improve the operation and risk management ofthese enterprises, which would eventually benefit the establishment of the harmonysociety and the continuous development of the economies.