A Research On Performance Evaluation Of Subsidiary Based On Sustainable Value Growth

With the rapid economic development, group company management system has become a very important form of organization, because it fits with the modern enterprise management system well. However, because of the information asymmetry between group company and subsidiary company, as well as the problem of "insider control", group company's control and management to subsidiary has become a new key problem. Among others, performance evaluation of subsidiary is an important part of group company's control and management of subsidiary. Based on the analysis of the current situation and main problems existing about the performance evaluation system of subsidiary, the author combines with the existing performance evaluation theory and method home and aboard, and applies a comparative study, in order to search for effective solutions to the performance evaluation of subsidiary for current group company.At the beginning of the theoretical part, the thesis introduces the related theory of the performance evaluation of subsidiary,then reviews the current performance evaluation modes of subsidiary, including the performance evaluation based on the DuPont Financial Analysis System, EVA performance evaluation, the performance evaluation according to performance evaluation of the state-owned capital rules, Balanced Score Card, stakeholder model, etc. Meanwhile, according to the theory of the sustainable growth and enterprise value growth, the author puts forward and expounds the theory of sustainable value growth, and then puts forward the performance evaluation of subsidiary based on sustainable value growth.Then, the thesis analyzes the connotation, characteristics and requirements of sustainable value growth, points out that the performance evaluation index design of subsidiary based on the sustainable value growth should combine the financial index with business management, stakeholder, information technology, collaborative index and so on, so that form a multivariate index system. Moreover, the thesis points out the analysis framework of performance evaluation index of subsidiary based on sustainable value growth.Again, the author puts forward performance evaluation index of subsidiary based on the sustainable value growth, points out the design elements of the evaluation system, and expounds the evaluation index design as the core:firstly, illustrates the principles of the performance evaluation index design and that specific index selection should include financial, management, stakeholder, information technology, and collaborative indicators; secondly, defines secondary indexes according to the above five primary indexes, constitutes the performance evaluation index design of subsidiary based on the sustainable value growth; Lastly, chooses the Delphi Method and Analytic Hierarchy Process Method to determine the index weight, and illustrates the Delphi Method and AHP.Finally, on the basis of theoretical analysis, the thesis does empirical study, by using the cases of subsidiary A and B of a certain corporation. In the case study, the thesis introduces the basic information of subsidiary A and B, selects typical two subsidiaries, calculates the actual value of each index, determines the weight by the Delphi Method and Analytic Hierarchy Process Method and analyzes the research results. The thesis demonstrates to evaluate subsidiaries performance in practice.At the end of the thesis, the author summarizes the research systematically, and puts forward some suggestions for performance evaluation of subsidiary based on the sustainable value growth, and finally prospects the future research.