Evaluation Of Capital Structure And Operational Performance Of Listed Auto Companies In China

As the main component of China's manufacturing industry,the automobile industry has made significant contributions to China's economic development,and has made great progress in the past 20 years of development.In 2018,due to the combined effects of multiple internal and external factors,China's auto market experienced its first annual negative growth since 1990.In the whole year,the domestic market sold 28.146 million vehicles,with a year-on-year decrease of 3.8%,which broughtabout an unprecedented challenge in the whole industry.Nowadays,there are a large number of automobile manufacturing enterprises in China and a wide range of business operations.However,the industry is widely puzzled by some general situations of low capacity utilization and insufficient management and innovation capabilities.Therefore,this paper aims to evaluate the capital structure and operating performance of China's auto companies to understand and analyze the rationality of the capital structure of China's auto industry,so as to help business decision makers and policy makers to solve relevant business performance problems and provide basis to help them with macro and micro decision-making,thus ultimately achieving the purpose of improving the competitiveness and promoting the development of the entire industry.In recent years,there have been many related studies on the performance evaluation of automotive industry.The research methods mainly focus on the stochastic frontier analysis(SFA)method with parametric data and the DEA method with non-parametric data,but the coverage of the research is still relatively limited.Few studies have involved the evaluation of corporate capital structure and economic performance.Based on previous studies,this paper uses the two basic models of DEA(BCC model and CCR model),and further refers to the Malmquist index based on DEA to evaluate the operating performance of 24 listed automotive companies in China from 2012 to 2018.It measures the comprehensive technical efficiency,pure technical efficiency,and scale efficiency separately,and uses the total factor productivity index to dynamically analyze the production efficiency of the entire industry.After analysis,this paper draws the following conclusions:First,the overall operating performance efficiency value of China's auto companies is still low.The two companies with the highest comprehensive technical efficiency are Yaxing Bus and Great Wall Motor.There is also a large gap in the development level of each industrial cluster.In comparison,the industry cluster with the highest average comprehensive technical efficiency value is the Yangtze River Delta region cluster.Second,in terms of the overall development of China's auto industry from 2012 to 2018,the overall operating efficiency of the sample 24 companies is in a state of fluctuation and rising,with a high fluctuation range.Nearly half of the companies are in a state of increasing returns to scale,which indicates that companies can increase their investment in production factors and strengthen their management level to achieve greater benefits.Third,the average total factor productivity index of the auto companies in the sample throughout the seven years is slightly greater than 1,indicating that with the new technological progress and innovation,the production and operation efficiency of automobile companies has achieved a certain degree of improvement,but the fluctuations around the years are still large,and the average annual technical efficiency change index,pure technology efficiency change index,and scale efficiency change index are all less than 1,indicating that there is a downward trend in efficiency values in the seven years.The capacity of production management still needs to be further improved.This paper is mainly divided into five parts.The first part is an introduction,which outlines the background,research goals and significance,research content and framework,research methods,and innovations of this paper.The second part is a literature review,including related theories of the DEA model and related performance evaluation literature of the automobile industry.By sorting out the existing literature and research,it lays a theoretical foundation for the research of this paper.The third part is to determine the research method of this article,and build the operating performance evaluation system of listed companies in China's automotive industry according to the development characteristics and business models of each automobile enterprise.It includes an overview of the DEA model research methods,discussion of selected input-output indicators,construction of an index system and the final model.The fourth part is empirical research design,including the selection of samples,the definition and establishment of sample indicators,the calculation and ranking of DEA model,the analysis of empirical results,and the summary of the current capital structure of listed companies in the automotive industry in China on the impact of operating performance and related existing problems.The fifth part is the research summary,relevant policy recommendations and future prospects.