Study On The Operational Efficiency Of The Petrochemical Listed Companies Of China

Petrochemical industry, as a strategic pillar industry, is essential to our national securityand the development of the national economy. Although the petrochemical industry hasachieved great development since the reform and opening up, but China’s petrochemicalindustry is still in the initial stage of reform. The operational efficiency, as an importantindication of the petrochemical industry overall level and comprehensive strength, stillreminds a big gap between that of developed countries, and there is few study aboutpetrochemical enterprise operational efficiency in China, therefore, the research onoperational efficiency of petrochemical listed companies is of urgency and practicalsignificance in order to improve the operational efficiency of the industry.After the comparison of evaluation methods, Data Envelopment Analysis is selected toevaluate operational efficiency because China’s petrochemical industry is a multiple input-output system. With the support of relevant theory of operational efficiency evaluation andsome certain principles, the paper selects12petrochemical listed companies as the researchsample. In order to build a reasonable index system, the paper takes main business cost, threeperiodic expenses, number of employees as input indexes, and takes main business revenue,total assets as output indexes. Based on the data of12petrochemical listed companies during2007to2011, firstly, this paper evaluates and analyzes technical efficiency, pure technicalefficiency and scale efficiency from the perspective of the static, and evaluates total factorproduction index from the dynamic point of view with the method of Malmquist index, anddynamic and static analysis is combined in the empirical analysis. Suggestions are putforward for the improvement of management efficiency of the petrochemical industry inChina according to the results of the empirical analysis and the development status of thepetrochemical industry.