Research On Relationships Between Financial And Non-financial Performance Indicator Which All In Enterprise Evaluation System

Due to the changing of the surviving circumstance for enterprises and the fierce market competition today, the contents of enterprise's performance evaluation presents a diversified trend. For there are both advantages and disadvantages in financial performance indicator and non-financial performance indicator respectively , when using these two indicators, it must be considered coordinately,contingently and as a whole, In a certain sense, studying the relationship between Financial performance indicator and Non-financial performance indicator can better evaluate enterprise's prefermence and lead enterprises focus on the value creation and long-term development.This paper is divided into five parts: (I) Based on the relationship of enterprise's evaluation system and performance indicator, the constituting elements of the performance evaluation system are studied, which denote that, the proper setting of performance evaluation indicator is the key element of enterprise's achievement appraisement. (II) The classical financial performance indicator is introduced, whose advantage and disadvantage, including the development trend of the performance evaluation system are analysed, which is a contrast foundation with the non-financial performance indicator; (III) Firstly, the mode of non-classical financial performance evaluation is introduced, and then, the non-classical financial performance indicator is divided into the recursive mode indicator and the strategic mode indicator. Based on these, the advantage and disadvantage of the non-financial performance indicator are analysed and appraised ,comparing with the financial performance indicator.(IV)The correlation between financial performance indicator and non-financial performance indicator is studied. After concluding researches of EVA from domestic and abroad, it concluded that, the integration of non-financial performance indicator and financial performance indicator is more effective in presenting the economic value and market appraisement. The reform of the enterprise performance evaluation system must be based on the strategic aim. Paper has empirical verification on Shanghai listed companies, discuss three questions, that is if there is relation between EVA and traditional financial performance indicator ,such as accounting profit, what degree do they reflect each other, whether there is any quantizing relation about them. The domestic enterprise practice on non-financial performance indicator is presented, also the characteristic and disadvantage of domestic enterprise performance evaluation system are analyzed; (V) Finally, it presents that, upon the unite strategic frame, how to set up the enterprise performance evaluation system according to combining non-financial performance indicator and financial performance indicator, considering the enterprise stage characteristics and industry feature.This paper aims to analyse and appraise financial performance indicator, non-financial performance indicator and their relations, and based on it, the strategic frame of the enterprise performance evaluation indicator system is presented.