A study on the performance of water listed corporation using BP neural network

Abstract

Water is of great significance in the industrial development and structural adjustment of economy in China. Urban water affairs have become one of the most important urban infrastructure existing to support the entire economic and social development. Urban water industry is under reforming in our country the past two decades and it has achieved great results. Government supports privatization of water industry greatly and the rapid growth of urban water affairs accelerate enterprise size and income. In recent years as China's water problem is getting worse, the public pay close attention to the environment and the performance issues of water companies cause more and more general concern of the government, the public and investors. Therefore, to assess performance of water companies has become increasingly necessary. This paper intends to select the larger water companies in the Shenzhen Stock Exchange and the Shanghai Stock Exchange, the 25 water companies, in period of 2011–2014. Based on the research status at home and abroad, the paper evaluates the performance of water listed companies based on DEA and BP neural network method. At last, we test the predictive ability of the network, and the network is conducted accurately.