Empirical Assessment of Factors Influencing Corporate Performance of China¡¯s Independent Brand Automobile Companies

China¡¯s independent brand automobile is an infant industry in China. It is characterized by a small share in the world market and low price with unreliable quality. However, continuous expansion of China¡¯s population, an increase in the number of high-end consumers, coupled with rapid economic development, serve altogether to promise China¡¯s independent brand automobile companies a bright future. In October 2014, China introduced a favorable policy that low-exhaust models (1.6L and below) pay half of previous purchase tax. Afterwards, China¡¯s independent brand automobile industry experienced a booming period. Nevertheless, the gradual degradation of policy dividend, changes in market environment, and consumer awareness, have compelled China¡¯s independent brand automobile companies to adjust their original business model and to innovate accordingly so as to meet new market demand. This paper empirically investigates factors influencing corporate performance of China¡¯s independent brand automobile companies. It utilizes data of all 18 listed China¡¯s independent brand automobile companies between 2012 and 2016. Factors assessed include capital scale, enterprise growth rate, capital turnover rate, enterprise solvency, research and development expenditure input intensity, sales channel, human resources etc. Empirical results find that the scale of the company, the growth rate of total assets, the growth rate of net profit, the profit margin of core business, the operating profit margin, the current ratio, the quick ratio, the intensity of research and development investment, and the ratio of highly educated employees, are the key factors which enhance corporate performance of China¡¯s independent brand automobile companies.