Application of Factor Analysis to the Performance Evaluation on the Listed Pharmaceutical Companies
Yongle Liu
Abstract
Yongle Liu
Abstract
In the first half of 2004, the overall performances of listed companies in medicine industry dropped for the first time. In the capital market, investors are eager to know clearly the management performance of the listed companies in the medicine industry. Thus by building a factor analysis model, the author carries on comprehensive evaluation on 21 listed companies' performances in the medicine industry of China's security market, which helps to set the comprehensive scores and order of these 21 listed companies. Then the author analyzes these scores and order so that to a certain extent they can offer some references for the investors to invest rationally and for the listed companies to improve their performances,
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In the first half of 2004, the overall performances of listed companies in medicine industry dropped for the first time. In the capital market, investors are eager to know clearly the management performance of the listed companies in the medicine industry. Thus by building a factor analysis model, the author carries on comprehensive evaluation on 21 listed companies' performances in the medicine industry of China's security market, which helps to set the comprehensive scores and order of these 21 listed companies. Then the author analyzes these scores and order so that to a certain extent they can offer some references for the investors to invest rationally and for the listed companies to improve their performances,
Key concepts: Order (exchange), Business, China, Security market, Listed company, Accounting, Finance, Law