Research on Financial Governance Efficiency Based on Listed Companies of DEA
|Keywords||financial governance efficiency evaluation DEA|
Financial governance is the core and soul of company governance, more and more scholars have realized the important role of financial governance to a company’s operation and performance. The level of a company’s financial governance is also an important decisive factor of the company competitiveness. At present there are extremely few researches on the financial governance, and most of the few researches are only limited to the financial governance structure, and there is quite a shortage of the research on high-low balance of financial governance efficiency. However, efficiency is the core and main line in economic and management research. The financial governance efficiency is also the fundamental objective of financial governance. Therefore, to deepen the research on the financial governance issue of a company, the issue on efficiency cannot be avoided.There are many methods to evaluate the efficiency, compared with other methods, Data Envelopment Analysis has the advantages of avoiding the subjectivity of determining weight indicator artificially and not being influenced by the measuring unit. In this paper, through the research on main efficiency evaluation methods such as Regression Analysis, Careersmart Balanced Score Card and Principal Component Analysis, the defects of these methods in the evaluation of financial governance efficiency evaluation are analyzed. By analyzing the characteristics and advantages of DEA method, the feasibility of applying DEA for the financial governance efficiency weighing of listed companies. Finally, the method most appropriate for the financial governance efficiency of listed companies-DEA is selected.In this paper, on the basis of analyzing and summarizing the financial governance-related theories, the previous financial governance efficiency evaluation system both at home and abroad is used for reference, the input and output indicators are selected from the aspects of financial governance structure and financial governance mechanism. With the textile industry as the representative, the financial governance efficiency of35listed companies conforming to the requirements in the textile industry. The analysis in this paper is classified into transverse analysis and longitudinal analysis. Through the analysis on the average data of5years from2008to2012,17companies with relatively good financial governance efficiency are obtained, for other relatively ineffective listed companies, according to the analysis of improved target value, the improvement requirements for input and output are summarized. Through the redundancy analysis and the effective front-edge analysis in the longitudinal analysis, the input indicators influencing the financial governance efficiency of textile industry, such as asset-liability ratio, rate of circulating shares, number of independent directors and the frequency of annual meeting of board of supervisors etc.In this paper, Using DEA method to measure the efficiency of financial governance of listed companies is an innovative, it make the documents about the financial governance efficiency more objectively and comprehensively, provide a reference for the efficiency of financial governance research on different industries.