SG Group's Parent-subsidiary Performance Evaluation Study

With the rapid development,more and more china groups choose the system of parent-subsidiary corporation as their orgnizational form,and become huge economic organizations.With the constant enlargement of the scale,that the subsidiary goals are inconsistent with the objectives of the parent company and that the subsidiary misuse the parent company's assets become problems. So,Research of the means of China's parent-subsidiary corporation management has profound practical significance.Performance evaluation of parent-subsidiary corporation,as one of the important means,provides information and incentives to support parent-subsidiary corporation management activities.The parent-subsidiary performance evaluation system is transformed from the system of single Enterprise,but has its uniquess.The core issue of the parent-subsidiary performance evaluation studies is that how to understand the parent-subsidiary performance evaluation system's object and target,and how to adapt it to the need of guiding parent company in charge of subsidiaries.SG Group is a large state-owned enterprise groups.Its business scope include highways,transportation construction,real estate and financial.SG Group's existing performance evaluation system comprises three major shortcomings:It haven't differentiated system of indicators for Different subsidiaries,can't control investment activities of subsidiaries effectively,doesn't support Business synergy in group.Firstly,the author clears the SG Group's performance evaluation mode of parent-subsidiary corporation by studying the SG Group's strategy and control mode of parent-subsidiary corporation:the balanced mode is the main,supplemented by the process mode and the output mode.the author also find matching focuses on performance evaluation for different subsidiaries.Secondly,when selecting specific indicators to form SG Group's indicators system of performance evaluation models,the author introduce EVA to the system in order to control Investment s of subsidiaries.At the same time,the author establish a new performance evaluation index system of SG Group by the financial outcome indicators,process indicators,subsidiary of sector performance indicators and negative indicators as four categories of indicators,in order to providing Differentiated performance evaluation for different subsidiaries. Finally,for SG Group's performance evaluation process, organization, evaluation cycle,incentives and other aspects of an optimization proposal. In addition,the authors establish a new formula for calculating the value of the composite indicator,and replace the use of coefficients multiplied by the weighted method to combining the financial indicators and non-financial indicators,highlighting the status of non-financial indicators,Finally,the authors also give some optimization proposals for process, organization,evaluation cycle,incentives and other aspects of the SG Group's performance evaluation system of The parent-subsidiary performance evaluation.