Based On Small And Medium Investors The Decision Usefulness Of Financial Performance Evaluation System

Till now, the building of our stock market is still not completely finished. Most of the middle-small investors are lack of necessary investing knowledge and deciding tools, which make their situation be very bad for the last time. They don't invest on the securities reasonably. Their interest cannot be protected effectively. Therefore, the efficiency of our stock market is very low.In order to change the middle-small investor's situation and guide them to invest with scientific methods, it is necessary to establish a performance appraisal system that is not only can be easily understood and used, but also be economical and effective. This paper just aims at this. Based on the theme of helping the middle-small investors make decision, it learns from all the theory and methods that have been existed, uses the Spearman relative testing method to select indexes, applies the variable coefficient method to determine the indexes' coefficient, establishes a linear financial performance appraisal system, and verifies the system's effect by using positive method.At last, the system designed by this paper is applied to evaluate all the listed company of the household appliance industry and communicating industry. Meanwhile, contrast this system with other three systems, i.e. Chinese honest security evaluating company's performance appraisal system, Qinghua University's performance evaluating system and Zhengxing-ruoshan financial wind directing system. It can be concluded that this system has the similar appraisal results with other three authoritative systems. At the same time, this system is more fit for middle-small investors to use because it is much easier and more economical.