Business Performance Evaluation Studies

As is well known, the development of economy plays an important role in promoting a nation's strength and enterprise operating performance reflect the quality of the economy. It can help the ruling authority to control and help the investors discover the valuable company if the inner value of the corporations can be accurately evaluated. At the same time, it is significant for the managers to help them improve their way of management. However, enterprise operating performance evaluation is complicated because it' s difficult to choose the evaluation index and it' s hard to satisfy everybody who utilizes the evaluation result. Enterprise operating performance evaluation has been a hot topic in both the academic and business field around the world since the foundation of Scientific Management in 1891. In our country, the enterpreneur had to obey the project made by the government under the system of planned economy. Therefore, the enterprise operating performance evaluation belongs to the government. After reformation and open, the research has started in our country with the planned economy transformed into the system of market economy. Reading the research achievements, we found that most of the research is in the aspect of the eye of the owner. That is to say, they all focused on the evaluation from outside. The research is scarce in how to design and build a business performance evaluation system that is suitable to improve the management and enhance the competition force. In fact, to meet the need of management is also an important subject in the field of performance evaluation. Therefore, the concern in this paper is in the perspective of improve the level of management. First part of the paper is introduction. It' s mainly about the background of writing this paper and research method. Chapter one: The theory about the enterprise operating performance evaluation. We started with the main concepts of evaluation. Then, we introduced the theory that performance evaluation based on. The scope was enlarged and the method of evaluation was improved with the development of economics and management. After that, we introduced the generalization of enterprise operating performance evaluation and outlined the contents, components and principals that should be obey. Chapter two: the research and practice of enterprise operating performance evaluation. Firstly, we review the practices that have been done in enterprise operating performance evaluation both home and abroad. We got to know that financial statement is always the principal part of performance evaluation and it is popular in all of the country that the combination of quantitative analysis and qualitative analysis. After that, we introduced the system of State-owned Capital Performance Evaluation. To some extent, it is the most comprehensive and synthetic system formulated by the government because it combines financial index with non-financial index and combines quantitative index with qualitative index. However, enterprise operating performance evaluation concerned in this system is from the eye of an enterprise-owner. It ignores the requirement of strategic management and put all of the industries under the same evaluation system. Chapter three: Empirical Research. In order to get the accurate result, we should choose the companies that belong to the same industry. The research method in this part is Factor Analysis. The heart thought of the Factor Analysis is to deduce a few synthesized factors from many original indexes. Then, we explained these factors on the basis of the factorburden matrix. According to ratios of variance contribution, the five principal factors can be explained as factor of making profits, factor of repayment ability, factor of asset administration ability, factor of growing ability and factor of earning cash ability, from the component score, Managers can get to know their situations in their industry and analyse the company's strengths and weaknesses. Chapter Four: Conclusions of this paper. Firstly, we show the different...