Research On The Debt Financing Efficiency Of Investment For Rare Earth Listed Companies

The investment activity is one of the most important daily activities at enterprises.The situation of obtaining profit at enterprises depends on the increase of enterprisevalue very much. The reasonable investment decisions can create continuous cashinflows for enterprises, increase the value of enterprises, and achieve the stockholders’equity maximization. In the reality, the low investment efficiency is a commonproblem at enterprises in our country.This thesis mainly do research about investment efficiency.In consideration ofthe importance of rare earth in the scientific and economic fields, the research targetof this thesis is set as the evaluation of investment efficiency of listed companieswhich engage in rare earth, and this thesis chooses twenty two listed companies in ourcountry as the research objects.This thesis chooses DEA as evaluation model, because DEA can realize effectiveevaluation to decision-making unit which includes multiple input and multiple output,under the condition of uncertain production function. The evaluation process includestwo parts: firstly, this thesis uses DEA model based on the topsis theory to evaluatethe investment efficiency of twenty two listed companies. Through the first process,we can evaluate investment efficiency of decision-making unit, and analysis thecauses of ineffective investment. In addition, the first process can check out the modelthis thesis built and indicator system his essay chose, and prepare for the nextevaluation process. Secondly, this thesis evaluates the returns state related to the scaleof the decision-making unit.The correlation coefficient of the evaluation results of the first process and rateof return on net operating assets is0.6047which indicates the evaluation process iseffective and indicator system this thesis built is reasonable. The correlationcoefficient is the permission to the second process. The content of this thesis is mainlyabout the returns state related to the scale of twenty two listed rare earth enterprises. Through the research above, we find when listed enterprises scale up,they can gainmore economic benefits.