A Study On The Performance Evaluation Of China's Listed Companies

Before implementation reform and open policy, the organization form of China's enterprise is the system of ownership by the whole people enterprise and the collective ownership enterprise. The China's listed companies have been developing with the reform of joint stock system in the state-owned enterprise since the mid 1980's. With economical development step speeding up, listed companies have gradually become an active power in the national economy. On the other hand, with the unceasing development of the stock market, the standards of investors have gradually advanced, the performance evaluation of the listed companies appears more and more importantly in many aspects such as guiding the investor rationality investment, assisting the market superintendent to strengthen supervising and managing and supervising listed companies to strength internal management function. Therefore, how to evaluate listed companis has the significant practical significance.The traditional performance evaluation systems of the listed companies excessively pay great attention to the corporate finance achievements and price factors and neglect the non- financial index, which cannot to be possible directly to count the price factors. However, the competition environment more and more is bent on having managers to take and to carry on the management decision-making on non- finance measurements, like the market share, the innovation, the quality and the service, the productive forces as well as employee's training this kind of non- finance measurements should play more important role in the achievements measurement aspect. The traditional financial evaluation systems limitation also mainly display in: emphasizing result "after autumn does accounts", neglecting process "the evaluation at the right moment"; emphasizing partial "branch achievements", neglecting whole "combination benefit" and so on aspects, thus they cannot comprehensively reflect the resources and the strength of the listed companies. Therefore the traditional performance evaluation of the listed companies have the very big limitation under the modern business environment, and cannot efficiently instruct the investor rationality investment, assists the market superintendent to strengthen supervising and managing, the supervision and strengthen internal management function.On the basis of the significance and the development history of the performance evaluation of the listed companies, this article analyzed the domestic and foreign existing performance evaluationsystems then further to analyze questions which the performance evaluation systems of the listed companies appear, and how to consummate the performance evaluation systems of the listed companies has made the discussion. On the basis of the experience from western performance evaluation of listed companies and combining the our country current reality, the synthesis had considered both financial index and the non- financial index, and with the assistant of index factor method and Model-exploration map, established performance evaluation system model, which1 is based on the prediction theory and modern mathematical statistic theory, on the basis of the experience from western performance evaluation of listed companies and combining the our country current reality, the synthesis had considered both financial index and the non- financial index, and with the assistant of index factor method and Model-exploration map, established performance evaluation system model, which is based on modern mathematical statistic theory. Moreover, this article takes advantage of both artificial neural network method that evaluates financial index and AHP and FCE that evaluate the non- financial index, which make possible the performance evaluation of listed companies. The main points of this article as follows:The first chapter "the introduction" has carried on the analysis of both the basic condition and the existence problems of China's listed companies, then pointed out the necessity of the performance evaluation of China' s listed companies, and proposed studied goal and overall construction of this article: taking advantage of both index factor method and Model-exploration map, this article has established the system model of performance evaluation of China listed companies. With the assistant of artificial neural network method that evaluates financial index and AHP and FCE that evaluate the non- financial index, which make possible the performance evaluation of listed companies.The second chapter " the theory basis and methods of the performance evaluation of the listed companies" introduced the theory basis and methods of the performance evaluation of the listed companies, including the entrusting theory, the management theory," biggest and smallest" principle as well as several quite typical achievements appraisals method such as EVA, REVE and Balanced Scorecard. Finally this chapter has analyzed the tendency of the performance evaluation of the listed company and then proposed the standard of the performance evaluation systems should be: combining Financial index and non-financial index, combining static results appraisal and process dynamic appraisal, unifying visible achievements and invisible achievements, unifying owner benefit and market direction.The third chapter "the establishment of the design consideration of the performance evaluation ofthe listed company" pointed out that the system model of the performance evaluation of the China listed companies was a very complex system, which involves the scope broadly and has to consider many factors such as the government policies and technologies. Firstly the system model of the performance evaluation of the listed companies has to embark from the fundamental realities of the country. In addition, the goal is serving for investors; secondly, the system model of the performance evaluation of the listed companies need to synthesize factors that would influence the performance of the listed companies, and also should transfer the crosswise comparison by the longitudinal contrast primarily; Thirdly, the system model of the performance evaluation of the listed companies must take the system theory as the rationale; Fourthly, the system model of the performance evaluation of the listed companies is supposed to adopt the quantitative evaluation and the qualitative analysis combination; At last,on the basis of the analysis integrants of the performance evaluation system, this article has determined the plan and principle of performance evaluation system.On the basis of analyzing financial factors and the non- financial factors of the listed companies leading to the questionnaire, the fourth chapter " the system model of performance evaluation of China1 s listed companies" sent questionnaire to high level financial managers in order to find the important evaluation index, used SPSS to analyze these questionnaire, and then created Model-exploration maps to obtain the most important financial factors and the non-financial factors, on which the system model of performance evaluation of China' s listed companies is based. At the end of this chapter, each index has been clearly defined.The fifth chapter "ANN-AHP-FCE performance evaluation method" puts forward the comprehensive performance evaluation method for China' s listed companies. This article takes advantage of both artificial neural network method that evaluates financial index and AHP and FCE that evaluate the non- financial index, which make possible the comprehensive performance evaluation of listed companies. Moreover, this chapter also applied these methods to two listed companies.The last chapter draws a conclusion of all, summing up what is creative in this article, and suggests what should be done to further improve this study.