Research on Performance Evaluation of Listed Companies in China Based on Factor Analysis and Cluster Analysis

摘要

This paper choose 2841 listed companies financial data in 2016 from Shanghai Stock Exchange from the RESSET data and build performance evaluation index system with 10 financial indicators. This paper uses factor analysis method to reduce the dimension of the evaluation index in the sample of listed companies and classify the listed companies by cluster analysis method. The number of evaluation index is reduced to 4 from 10, namely: income level, profitability, operation ability, growth ability, the original amount of information from the 4 factors to carry up to 73.387%. According to the contribution rate of the common factors and factor rotation to get The comprehensive evaluation model of financial situation of listed companies in China and use profitability factor in the result of factor analysis as the goal of clustering on listed companies, the clustering result showed that the Chinese listed companies can be divided into 5 categories, grade AAA; grade AA; Grade A; grade B; grade C. This paper has found that there have significant differences in the level of profitability and operational level between grade AA and grade B, not in the level of income and growth ability.