A Study On The Factors Affecting The Profitability Of Electronic Components Manufacturing Enterprises In China

Nowadays,under the international environment,the trend of trade protectionism has become more and more intense.The main reason for the big trade deficit between China and the United States is that the United States limits the export of high-tech products to China.If the trade war is upgraded comprehensively,the overall output of China's electronic manufacturing industry will be affected,but the electronics components manufacturing industry has the strength to complete the domestic substitution will usher in an opportunity.The good operation and management system in China's electronic components manufacturing industry is a key element for enterprises to survive and make profits.How to improve business performance and enhance profitability is a problem that our manufacture of the electronic component needs to pay close attention to.The profitability of enterprises can reflect the past business results of enterprises,the current operation status and the improvement in the future.Studying profitability can provide theoretical basis and decision-making basis for the development of electronic components manufacturing enterprises in China.The sample data is from 2006-2016 years of electronic components manufacturing enterprises in china.This paper first makes a quantitative measurement of the profitability of the electronic components manufacturing industry,and then builds panel data model to explore the influencing factors of profitability of the electronic components manufacturing industry from two aspects,the determination of profitability by using the factor analysis method to make comprehensive evaluation,and the analysis of factors affecting profitability is discussed in two cases,the financial indicators can be directly look-up,non-financial indicators need quantitative analysis.Management ability can use Tobit regression measurement,and equity incentive policy use propensity score matching(PSM)to screen matching samples.Finally the samples are used the difference-in-differences(DID)model,analyzing the profitability of Chinese manufacture of the electronic component from the enterprise scale,asset liability ratio,liquidity ratio,total asset turnover ratio,ownership concentration five financial factors and management ability of enterprises,the implementation of equity incentive policy two non-financial factors.The empirical analysis shows that the improvement of profitability is influenced by financial factors and non-financial factors.In the financial factors,enterprise scale and liquidity ratio are positively related to corporate profitability,asset liability ratioand ownership concentration have negative correlations to the profitability,the total assets turnover ratio has little effect on profitability;In the non-financial indicators,strong management ability can promote the profitability of the enterprise,the implementation of equity incentive policy can improve business performance and profitability.Finally,according to the research conclusions,the countermeasures and suggestions for healthy development are put forward for Chinese manufacture of the electronic component.