An Analysis On Influencing Factor Of Financial Performance In Chinese Appliance Industry’s Listed Companies

Household electrical appliance has become a pillar industry in china after thirsty years’rapid development. However, appliance industry is faced with fierce market competition and its development slow down gradually due to financial crisis, higher raw-material and human-capital price in recent years. As the industry slowdown, more and more people pay attention to the operation in appliance industry. Therefore, in order to understand Chinese appliance industry development, this paper will choose scientific and reasonable evaluation index from the empirical perspective to analyze listed company’operating performance and influencing factors.In this article, it takes listed company of household electrical appliance in shanghai and Shenzhen stock markets as research object. Recalling former research results on enterprise performance and influencing factors, the paper selects twelve evaluation indexes from four areas including profitability, operation, solvency and growth. Then factor analysis method is used to research financial data of appliance listed company from2009to2011, and finally calculates the comprehensive performance score and gets the whole performance ranking. The result shows that Haier gets the highest marks, while Chunlan has the lowest score and also ranks last. From the overall ranking, it also finds the business performance in small home appliance enterprises is better than big appliance companies.Based on comprehensive score by factor analysis, then the thesis chooses ownership structure, board characteristics, capital structure, company size and other8indicators to analyze factors influencing operating performance of appliance companies through multiple regression analysis. Finally the finding shows that ownership concentration, executive compensation and shareholding ratio of board are significantly positive with corporate performance, while independent director proportion and asset-liability ratio are not related. In addition, in this paper, the ratio of national share and enterprise scales don’t pass the significant test. According to empirical analysis, this paper puts forward the corresponding proposals on paying attention to corporate ownership and moderately concentrating ownership, improving the independent director system and strengthening the supervision on them, designing reasonable incentive method, establishing proper company scale and so on.