The Study For Technical Efficiency In China’s Equipment Manufacturing Industry Listed Companies

Equipment manufacturing industry is a basic industry and strategic industry in national economic development, especially since China’s reform and opening up, since the founding of the benefit from security of domestic and international political and economic environment and the globalization of economy, equipment manufacturing industry obtained rapid development in our country, the industry scale has been expanding, industry production system got a full build. However, relative to the western industrial powers, the development of equipment manufacturing industry in China is shorter, the accumulation of capital and technology experience from the industry is not enough, it has relatively weak industry foundation; core technology and industry competitiveness is lack, partly because of the low level of international division of labor and the low-end of value chains.The core problem above all problems of the equipment manufacturing industry in our country is the technology efficiency too low. So it is very important and very necessary to study the technical efficiency for the equipment manufacturing industry, it is very important significance for us to investigate the industry technical efficiency condition and to deeply understand the whole industries, it also provide a path for us to explore influencing factors of the technical efficiency and provide some policy suggestions to improve the technical efficiency level.Ferrell (Farrell,1957) first put forward in the modern sense of "technical efficiency" concept and research methods, domestic and international numerous scholars have done a lot of research for "technical efficiency" concept, research methods, the advantages and disadvantages of comparison between different research methods, the use of various methods in different fields and the development, the efficiency value is calculated, the factors influencing technical efficiency exploration and so on various aspects. In foreign countries, earlier studies mainly focus on technology efficiency’s concept definition and measurement methods, then gradually expand to main body of the enterprise, industry research, comparison between countries or regions, etc; domestic research on technical efficiency is basically about "technical efficiency" in reference to western concepts and methods used, the main research contents can be divided into three levels:the micro level of enterprises, medium industry (industry) level and macro (region) level. Combine technical efficiency and the equipment manufacturing industry research focused on the micro level of enterprises and medium industry (industry) level, mainly includes the following several aspects:(1) calculation for the enterprise technical efficiency value subject to the industry;(2) according to the industry categories, the technical efficiencies respectively calculated, and compared with each other;(3) compared and analyzed the differences about the technical efficiency of the industries among different areas;(4) industry technical efficiency influencing factors were discussed. The four aspects are the deepening and development of technology efficiency’s research methods and practice.In this paper, the research methods mainly include:(1) literature research. In reading extensively about the technical efficiency and the equipment manufacturing industry at home and abroad research literature, on the basis of reference to relevant literature of model building and index selection, in combination with the practical situation of the equipment manufacturing industry, determined to adopt the theory model and the related indicators.(2) Theoretical study method. Mainly explore possible factors existing in enterprise technical efficiency by using property rights theory, principal-agent theory and corporate governance theory.(3) Uses Frontier4.1software to calculate the enterprise’s technical efficiency value, and empirical test the technical efficiency influencing factors, the corresponding countermeasures and Suggestions are proposed according to the empirical results.In this paper, main contents and research frameworks are as follows:Chapter2mainly introduces the theoretical basis of this article and research status, research status quo of the research status mainly include the technical efficiency, the current research on the equipment manufacturing industry in China, and the application of technical efficiency in the equipment manufacturing industry.Chapter3samples of the equipment manufacturing industry to measure technical efficiency of listed companies, including model design, sample, design of data source, the indicator and estimated results analysis. The difference of technical efficiency from time dimension and space dimension is contrast analyzed, and the equation is explained, which leads to the following section to the content of the research.Chapter4samples of the equipment manufacturing industry of listed companies’ technological efficiency theory and discusses influencing factors, put forward research hypothesis.Chapter5chooses the appropriate technical efficiency index for quantitative processing and build inefficient model, the model is estimated, the estimated results are explained and analyzed.Chapter6summarizes the foregoing chapters, and this paper’s research conclusion, according to the research conclusion; it put forward countermeasures and suggestions to improve the technical efficiency of the equipment manufacturing industry.This article research conclusion and the suggestions are as follows:(1)28samples (2006-2011) level of technical efficiency of listed companies is generally low, the average technical efficiency is above0.55, and it slow growth to around0.6year by year. The differences between individual samples are larger, the highest can reach0.8, the lowest is only around0.15, but on the whole, it maintained the improving trend year by year. So the enterprises should fully realize the importance and necessity of technical efficiency research and development, actively involved in the process of technology innovation and research and development; they should actively participate in the technology innovation and research&development. The government should publish relevant fiscal policy and tax policy, encourage enterprises to carry out technological innovation and research and development, encourage enterprises to expand scale of investment in fixed assets, encourage enterprises to improve the utilization rate of fixed assets.(2) According to technical inefficiency model estimates result, the samples of the equipment manufacturing industry of listed companies capital (K) and Labor (L) elements output elasticity was respectively0.558and0.558, it shows the output elasticity of capital (K) elements is relatively larger. At the same time, the output elasticity of return on scale is1.0415, which indicates that industry scale reward increasing stage, the appropriate scale can bring economies of scale.(3) Samples of the equipment manufacturing industry listed companies exist expansion with the contradiction of insufficient utilization of investment in fixed assets and personnel’s many and diverse, at the same time, affecting factors of the technology efficiency research shows that the company total assets scale and efficiency was significantly positively related to board size and technology. So the enterprises should be appropriate to expand the scale of production and establish corresponding management hierarchy and department management.(4) Between the market share and investment and technology efficiency of period expenses was significantly positively relation. The enterprise should optimize production management fees in the process of configuration to improve product market share.(5) Executive pay levels and technical efficiency were significantly negative correlation, it shows it may be has over incentive problems of the equipment manufacturing industry listed company in our country. The enterprise should improve the corporate governance structure and governance mechanism, especially the reform lead to the possible excessive incentive problems.(6) The government should improve and construct the laws and regulations system of the company law and property right system. The suggestions are put forward for business operation of the external environment impact on technical efficiency.The innovation and disadvantages:Possible innovation lies in trying to introduce the stochastic frontier (SFA) methods to the equipment manufacturing industry of listed companies, it has a certain significance to the application of enriching the theory of technical efficiency in industrial and agricultural production practice. it measured the samples of the equipment manufacturing industry technical efficiency value of listed companies, and probes into the possible influencing factors of the empirical test.The insufficiency in research mainly displays in:(1) imperfection of the model design and limitation of data.(2) the selection of measurement method is not comprehensive.(3) the selection of model index is imperfect.(4) the cause for the study results disagree with others research conclusion could not explore in-depth comprehension. In the future, if it will be chose a variety of econometric methods for a longer period of yearly data for empirical analysis study results of the analysis will be compared in a variety of ways, it is going to be a good choice in improving the research conclusion of this article.