The Relative Efficiency Of China’s Listed Shipping Companies Based On SFA

After several decades of development, she is playing an important role in the international shipping market. So its healthy and sustainable development is considerable for enhancing the overall strength of nation. Therefore, the evaluation of the shipping company’s performance should not just focus on the concept of profit or benefits but get know to the operating ability and market performance, namely the relative efficiency of shipping companies.Stochastic Frontier Analysis (SFA) has been in a wide application in the research of TE. Owing to take the efficiency interference of random errors into account, excluding the impact of external factors which is beyond the control of product department from non-efficiency, the application of SFA is in accordance with the actual production situation. Currently, SFA has become an important means of efficiency evaluation in domestic and foreign agriculture, banking institutions, insurance and other industries.SFA is introduced into the analysis of listed shipping companies’relative efficiency in this paper. This paper select10shipping companies which is listed on China stock market, and7shipping companies which is listed on other stock market, based on the data from2007to2012. The inputs include total assets, capital expenditure, number of employees, and the sales is output in the operation efficiency model; net profit, book value of equity as inputs, and market value as output in the market efficiency model. Empirical results show that China listed shipping company exhibit low relative efficiency, which almost totally lower than50%. Compared to international listed shipping companies, China’s ones were worse. Therefore, China’s shipping companies has much scope for improvement.Finally, this paper puts forward concerned proposals for improving relative efficiency of China’s listed shipping companies.