Abstract
Studying the sustainability of the financial performance of Chinese listed companies is an assessment of their future development capability and a comprehensive evaluation of all aspects of the companies over the past period of time. Based on the financial data of manufacturing industry of Chinese listed companies from 2008 to 2015, this paper uses the AHP (Analytic hierarchy process) method to determine the weight of each secondary indictor, calculate the sustainable development capability of financial performance, and analyze and compare the sustainable financial performance of manufacturing sub-industries. The long-term trend and the periodical trend of the sustainable development of the manufacturing industry in Chinese listed companies are analyzed through the HP (High-Pass) filter method. The results show that the long-term sustainable financial performance of the manufacturing industry of Chinese listed companies is basically maintained. Through the comparison of regions and ownership, it has been found that the sustainable financial performance of Chinese listed companies in the eastern and central regions is rising, while that of the western region is declining; the long-term sustainable financial performance of non-state-owned enterprises is rising, while that of state-owned enterprises is declining.
Highlights
In recent years, China’s GDP growth rate has gradually declined
This paper introduces the evaluation indictors of the sustainable development and constructs an evaluation system of sustainable financial performance; uses the AHP method to assign the appropriate weight to each indictor; and calculates the sustainable development capability of Chinese listed companies from 2008 to 2015 according to the weight and the evaluation indictor
This paper studies the sustainable financial performance of Chinese listed companies in manufacturing industry, dividing sustainable financial performance into several indictors, analyzing the weight of each indictor by an analytic hierarchy process, and determining the overall goal, namely the sustainable financial performance of enterprises
Summary
China’s GDP growth rate has gradually declined. The economy has changed from high-speed growth to mid-high-speed growth, and this has become the new norm of economic development. Morioka and Carvalho [8] take industry differences into account when designing sustainable development indicators of performance, and construct the sustainable development evaluation system from four aspects such as organizational indicators, individual employee indicators, external communication indicators and an initial project evaluation system, but they do not measure the indicators, and their paper does not consider social and environmental performance such as firms’ ecological environment, corporate social responsibility This does not demonstrate that these indicators are not important, but because of the development of Chinese manufacturing industry currently in the primary stage, firms’ profit is their main target. This paper subdivides industry segments of the manufacturing sector, and compares the status of their long-term sustainable financial performance trend of each sub-industry of the manufacturing industry from the time, ownership and location perspectives; these results will promote the reform of state-owned enterprises and the coordinated development of the regional economy
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