Study On The Performance Evaluation System And Its Application For State-owned Enterprises

Performance evaluation is an important research of modern enterprise financial management, whether the construction of performance evaluation system for state-owned enterprises is correct and complete directly related to whether can comprehensively reflect the true operating performance of state-owned enterprises, and affecting the value maintenance and appreciation of state-owned capital. Therefore, building a scientific and reasonable performance evaluation system is important for development and expansion of state-owned enterprises. In April and September 2006, in order to make a comprehensive performance evaluation of central enterprises, the Stated-owned Assets Supervision and Administration Commission of the State Council (SASAC) issued the "Comprehensive Performance Evaluation of the central enterprises Interim Measures on Management" and the "Comprehensive Performance Evaluation of the central business implementation details." But when the SASAC of Guangdong use the Performance Evaluation System to evaluate the performance of enterprises,they find there are some subjective factors in the evaluation methods, selection of evaluation indicators and evaluation rules, so there is something need to be improved.In this paper, we use literature data analysis, principal component analysis and TOPSIS research methods to study and discuss the performance evaluation system of state-owned enterprises, combining theoretical study and practical application. This paper is divided into four parts: chapterⅠdescribes the background and significance of this research, and analyzes the performance evaluation research status abroad, and lists systematically the development of state-owned enterprise's performance evaluation system and the views of experts. Chapter II studies in detail its shortcomings and something need to be improved, based on the existing performance evaluation system. we consider that the existing performance evaluation system of state-owned enterprises is without considering the cost of equity capital, and that cash flow targets are inadequate, and that the evaluation system do not consider the correlation between indicators, and that the fixed-weight can not meet the need of different sectors. The chapterⅢamends the current evaluation system in indicators setting-up and evaluation methods, considering economic value added (EVA) and cash flow targets, then brings principal component analysis and TOPSIS to application of the performance evaluation of state-owned enterprises in China, finally proposes an improved performance evaluation system of state-owned enterprises. Chapter IV will apply the improved performance evaluation system to the state-owned power enterprises in Guangdong Province, to verify the feasibility and accuracy with empirical analysis.We choose Guangdong state-owned power enterprises as examples of the analysis and evaluation, comparing evaluation results of assessment system before and after improvement, combined with the practical business results, to verify rationality of the correction indicators system and Principal component analysis's feasibility and validity, which proves the improved performance evaluation system of state-owned enterprises has better application value, providing a new and effective way to probe performance evaluation of state-owned enterprises.