Empirical Study Of Financial Performance In Publicly Listed Apparel Firms

Since the policy of reform and opening in our country, more and more domestic textile and apparel companies which have established a modern enterprise system apply to have its stocks listed. In this way, the campanies can make their brands more strong and get more market shares. But there always have some companies fail to pass the IPO application, the main reason is they excessive pursuit of market share, increase the inventory and make the companies hidden many risks. In order to make the firms access to the capital market to get a better development, the big problem of high inventory need to be solved as soon as possible.Based on this issue, this essay adopt literature research, panel data, case studies to analysis the relationship with inventory turnover ratio, index of debt-paying ability and operation capacity and earning power.The main reasarch content is as follows:(1) Analysis of financial performance in publicly listed apparel and home textile firms.①Based on the classification standard of Shenyin&wanguo securities, pick37listed apparel and home textil firms as the research object, using financial data of years2008-2012to build panel data set.②By the test of Hausman to chose the right model (random effects model or fixed effect model) to analysis the relationship with inventory turnover ratio, index of debt-paying ability and operation capacity and earning power.(2) The inventory turnover ratio of case company.③Based on the business model canvas to analysis the case company’s overall operation. ②Using the panel data model to analysis the correlation of debt-paying ability index, operation capacity index and earning power index in case firm.③The change of macroeconomic factors play an important role on the development of our apparel and home textile firms, so this paper discuesses the factors of GDP, consumer confidence index and the residents’consumption level on the inventory turnover ratio of case firm.④Based on the reason and current situation of our textile&apparel enterprises, provided some suggestions to the case firm to improve the inventory turnover ratio.