Research On The Performance Measurement Of Financial Holding Company In China

With the end of five years' protecting finance, as a member of WTO, our government gives abroad financial institutions the same right to operate financial products according to the promise. The domestic financial institutions are facing a greatest challenge with domestic financial market full opening, and more abroad financial institutions would occupy the domestic financial market and directly compet in the same market environment with the domestic financial institutions. There has already been financial holding companies in reality in our country, but it fall behind a lot with management level, management measures and service quality, especially capital assets quality, capital sufficiency ratio, and profit-making capability and information disclosure. Simultaneously the organization structure of financial holding company is more complicated than that of specialized financial institutions (banks, securities firms, insurance companies etc.), and the measures and standards of present performance measurement are all in accordance with single financial business, but those measures and standards have difference when some financial businesses are assembled. Thus, it is essential to study on establishing the performance measurement of financial holding company in order that we can build up financial holding companies competing against international large-scale financial institutions and lift the level of operation and management.Firstly, the author reviews theories about performance measurement of enterprise and financial holding company, studies the basic theories on the performance measurement of financial holding company, then defines the financial holding company and the performance measurement of financial holding company, and then analyzes the specific characteristics of performance measurement. All these offer a basis in theory for the study. Secondly, the index system of performance measurement is established from four aspects of performance measurement system:financial perspectives, customer perspectives, innovation perspectives, risk perspective according to the characteristics of financial holding company and the priority of existing index system in performance measurement .This index system is made up of seventeen indexes. Thirdly, the performance measurement model is built up by adopting average weighted method and the index weight is decided by the method of improving AHP. Lastly, the rationality and practicability of the performance measurement system is proved through the positive study on CITIC Group.