Study On Performance Evaluating Methodes Of State-Owned Subsidiaries

There is a growing tendency of conglomeration along with the in-depth reformation and opening in China. Thus, in an environment featured with a managing model of parent-subsidiary companies, it is a new task of the promotion of subsidiaries' performance evaluation for the development of contemporary firms. Both foreign and domestic evolutions of appraisal methods on business performance were introduced in this thesis, as well as common ways of assessing constituent companies' achievement and insight into performance evaluation of state-owned subsidiaries. With a reference to the theory on lifetime circle of enterprise, the author proposed an appraisal system through which performance of subsidiaries could be valued respectively with a view to their various development stages of growing, maturing and ageing. The system was made up of quantitative and qualitative indexes which were analyzed in detail, whilst specific measures of grade were illustrated. Finally, a concrete analysis was made by an example in which the conglomerate S assessed the performance of its subsidiary H in 2003. Therefore, revelation significance could be seen from this paper for those who seek to establish a scientific and normal system of performance evaluation.