Financial Performance Evaluation of China´s Listed Steel Companies from Shareholders´ Perspective

The rise in share prices of the iron and steel sector in 2006 and 2007 and drop in 2008 due to the global financial turmoil raised a great deal of concern among shareholders. In this paper, concerns of shareholders are to be identified through questionnaires, and the financial status and developing trend of the listed steel companies is to be elicited by performing model verification (e.g. principal component analysis), processing and interpretation of the data from the Shanghai and Shenzhen stock exchanges for the last three years. The results provide insight for shareholder to make investment strategies from five aspects, reveal difference in the performance of growth factors and profit earning factors during the 3 years, confirm the shareholders´ investment behaviors under different market environment, and present evidence of accelerating the restructuring and closing down backward production facilities in the steel industry.