The existing company ranks are compiled in terms of some size measures as annual sales, total assets and/or capitalization, which could reflect the market share of the global giants in their industries. However, these ranks ignored the evaluation of corporate efficiency and effectiveness – the core value of company as a market participant.

1. Rationale

GlocalWin 500 aims to identify among peer companies those that can be set as the benchmark for their respective industries based on comprehensive evaluation of profitability, efficiency, creditability and growth.

GlocalWin 500 are jointly developed by Management Scool of Tianjin University(former Peiyang University, founded in 1895 with the name Peiyang University as the first university in China), and GlocalWin (Beijing) Consulting Company, the Pioneer and Leader in supporting government policy-making and institutional decision-making process through harmonizing best international practices with local context and based on unique scientific/systematical methodology, sophisticated professionals and tremendous information database.

2. Approach and Methodology

Based on annual reports of public companies in 69 stock exchanges in the world, we take the basic theories and practices in Relative Performance Evaluation (RPE), Benchmarking Management (BMK), Balanced Scorecard (BSC) and Economic Value Added (EVA) to develop GlocalWin 500 by comparing performance measures in peer industries.

(1) Factor Analysis

A factor extraction method used to form uncorrelated linear combinations of the observed variables. The first principal component has maximum variance, and successive components explain progressively smaller portions of the variance and are all uncorrelated with each other.

(2) Regression Analysis

The methods for calculating factor scores are regression, in which the scores that are produced have a mean of 0 and a variance equal to the squared multiple correlation between the estimated factor scores and the true factor values.

(3) Multiplicative Scoring

What multiplicative scoring does is to ensure scores in four perspectives face trade-offs and diminishing marginal substitution rate. The multiplicative scoring output is always less than that of additive scoring, and the only exception takes place when a company scores the same in four perspectives of profitability, efficiency, creditability and growth.

In this way, one must pay attention to the trade-off of different performance measures to maximize composite score, and balanced improvement in four-perspective scores are best ways to attain higher rank in comprehensive benchmarking evaluation.

(4) Percentile Ranking

Our ranking method percentile rank, the value of the new variable equals rank divided by the sum of the weights of peer cases and multiplied by 100.

3. Steps Taken

(1)We first review financial statement of over 17000 listed companies that were publicly trading as of Dec. 31, 2011 with an annual sales of over US$50 million;

(2)Each company receives a separate score from the perspectives of profitability, efficiency, creditability and growth by comparing performance measures with those of peering companies;

(3)We multiply the percentile scores for all four perspectives and compile a composite score for each company based on their rankings.

(4)We screen for the larger companies, which registered an annual sales above US$2 billion and among the 10% largest companies in each of 28 industries.

(5)We sort the companies in descending order by the highest composite score and apply our GlocalWin 500 rank, and the highest composite score gets the highest rank.

4. Evaluation Output

Based on public information of global listed companies, Tianjin University and GlocalWin jointly developed GlocalWin 500, which can be set as performance benchmark in their respective industries.

Link to 2012 GlocalWin 500 Full List (Amount in US$ Million)

Link  to 2011 GlocalWin 500 Full List (Amount in US$ Million)

2012年07月16日

2012 GlocalWin500 Released 45 Mainland Companies Included

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