Equity Financing Efficiency Measurement of Listed Companies in Strategic Emerging Industries based on DEA

• Main Authors: Si-si Li, Mu Zhang
• Format: Article
• Language: English
• Published: Atlantis Press 2020-11-01
• Series: Journal of Risk Analysis and Crisis Response (JRACR)
• Subjects: Strategic emerging industries; listed companies; equity financing; equity financing efficiency; DEA methods
• Online Access: https://www.atlantis-press.com/article/125945759/view

Equity financing is an important part of corporate capital structure decision-making. The level of financing efficiency is of great significance to the survival and development of Listed Companies in strategic emerging industries. In order to measure the equity financing efficiency of Listed Companies in strategic emerging industries, this paper uses data envelopment analysis (DEA) model to measure and study, taking 208 listed companies of strategic emerging industries as samples, through three input indicators. The paper calculates the DEA evaluation value of each decision-making unit from 2014 to 2018, and analyzes the efficiency of equity financing in different years and the comparative analysis among seven industries. The conclusion of this paper is: according to DEA–BCC model, the equity financing efficiency of Listed Companies in strategic emerging industries is generally low, mainly distributed in the lower efficiency range, pure technical efficiency and scale efficiency are mostly distributed in the higher efficiency range every year, most of the returns to scale are decreasing, and the equity financing efficiency exists unbalanced development among industries. According to DEA Malmquist model, the total factor productivity of seven strategic emerging industries tends to decline, the highest is new energy vehicles, which is 0.985, and the lowest is energy conservation and environmental protection, which is 0.951. The impact of technological change will be greater, followed by the change of scale efficiency. We should constantly improve the internal management level of the company, carry out technological innovation, select the correct financing channels, and coordinate the use of funds to create the maximum value.