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Strategic value evaluation of China steel companies based on factor analysis and entropy weight

  • Wan Jun Deng*
  • , Fa Jie Wei
  • *Corresponding author for this work
  • Beihang University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In knowledge economy, strategy decides competitive advantages of steel companies and intellectual capital has become an important factor of strategy and development. Based on strategic theory and intellectual capital theory, evaluating indices of steel company's strategic value are selected. Then, factor analysis is used in steel companies' data to abstract strategic factors and to obtain factor scores. Entropy weight method is applied to calculate factor weights. Finally, strategic values of steel companies are synthetically evaluated by factor scores and weights. Compared evaluating results and stock prices, the evaluation is effective. In conclusion, the evaluation selects systematically evaluating indices and their raw data are easy to be obtained. The evaluation avoids subjective scoring and weighing and its results are effective, so it has favorable practical value.

Original languageEnglish
Title of host publication2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009
Pages502-506
Number of pages5
DOIs
StatePublished - 2009
Event2009 16th International Conference on Management Science and Engineering, ICMSE 2009 - Moscow, Russian Federation
Duration: 14 Sep 200916 Sep 2009

Publication series

Name2009 International Conference on Management Science and Engineering - 16th Annual Conference Proceedings, ICMSE 2009

Conference

Conference2009 16th International Conference on Management Science and Engineering, ICMSE 2009
Country/TerritoryRussian Federation
CityMoscow
Period14/09/0916/09/09

Keywords

  • Entropy weight method
  • Factor analysis
  • Intellectual capital
  • Strategic value

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