13 January 2012 Research on the factors of return on equity: empirical analysis in Chinese port industries from 2000-2008
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Abstract
Port industries are the basic industries in the national economy. The industries have become the most modernized departments in every country. The development of the port industry is not only advantageous to promote the optimizing arrangement of social resources, but also to promote the growth of foreign trade volume through enhancing the transportation functions. Return on equity (ROE) is a direct indicator related to the maximization of company's wealth. It makes up the shortcomings of earnings per share (EPS). The aim of this paper is to prove the correlation between ROE and other financial indicators by choosing the listed port companies as the research objectives and selecting the data of these companies from 2000 to 2008 as empirical sample data with statistical analysis of the chartered figure and coefficient. The detailed analysis method used in the paper is the combination of trend analysis, comparative analysis and the ratio of the factor analysis method. This paper analyzes and compares all these factors and draws the conclusions as follows: Firstly, ROE has a positive correlation with total assets turnover, main profit margin and fixed asset ratio, while has a negative correlation with assets liabilities ratio, total assets growth rate and DOL. Secondly, main profit margin has the greatest positive effect on ROE among all these factors. The second greatest factor is total assets turnover, which shows the operation capacity is also an important indicator after the profitability. Thirdly, assets liabilities ratio has the greatest negative effect on ROE among all these factors.
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Wei Li, "Research on the factors of return on equity: empirical analysis in Chinese port industries from 2000-2008", Proc. SPIE 8349, Fourth International Conference on Machine Vision (ICMV 2011): Machine Vision, Image Processing, and Pattern Analysis, 834930 (13 January 2012); doi: 10.1117/12.920576; https://doi.org/10.1117/12.920576
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