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Quantitative Analysis and Evaluation of Enterprise Group Financial Company Efficiency in China

Author

Listed:
  • Yanni Huang

    (School of Economics, Fudan University, Shanghai 200433, China)

  • Sumei Luo

    (School of Finance, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Guohu Xu

    (School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Guanyou Zhou

    (School of Economics, Fudan University, Shanghai 200433, China)

Abstract

As a special financial institution, the financial company has a significant impact on the financial market and real economy. Therefore, further study of the efficiency of financial companies is of great practical significance. China’s financial company is equivalent to the “internal bank” of its affiliated group. Therefore, this paper refers to the quantitative analysis and evaluation method of the banking industry, combined with the data characteristics of the financial company’s industry. This paper carries out quantitative analysis and evaluation of the efficiency of 79 Chinese enterprise group finance companies from 2011 to 2016 through the DEA model and the Malmquist index model. The results are as follows: From the static point of view (based on the DEA model), the overall efficiency of Chinese financial companies is low and the efficiency is less affected by scale efficiency than that of pure technical efficiency; from the industry classification, the efficiency of oil processing, steel, and nonferrous metal financial companies is better than other industries. From the dynamic point of view (based on the Malquist index model), the overall efficiency of financial companies from 2011 to 2016 has been slightly improved and the efficiency is easily influenced by the change of scale efficiency; from the industry category, the changes of the efficiency, scale efficiency and pure technical efficiency of financial companies of military industry are fastest, and the technical progress of the auto industry financial companies is optimal.

Suggested Citation

  • Yanni Huang & Sumei Luo & Guohu Xu & Guanyou Zhou, 2018. "Quantitative Analysis and Evaluation of Enterprise Group Financial Company Efficiency in China," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:9:p:3210-:d:168487
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