Enterprise Performance Management Study Of The Effectiveness Of Non-financial Information

Performance evaluation is very important in modern enterprises control system, the basis of salary management. The financial indicators have been dominated for a long time because of their measurability, comparability, and accessibility. However, Financial indicators has inherent defects. Traditional enterprise performance evaluation method uses financial indicators. This evaluation method has some limitations:First, business performance evaluation is lagging behind and can’t fully reveal the developing direction of corporate experience and performance; Second, in this performance evaluation system, corporate executives are willing to be short-sighted; Finally, financial data may be manipulated and affects itsaccuracy. So, if the financial evaluation system only uses financial indicators, it is likely to cause the business to have instant success in the course of business,and is not conducive to establish and realize long-term strategic objectives,and the validity of the performance evaluation will also be questioned.This article first summarizes the research of various scholars on the relationship between non-financial indicators and corporate accounting performance and market performance, as well as the research of corporate executive pay, and then sumarizes the advantages and disadvantages of non-financial indicators summarized and the principal-agent theory which supports the non-financial indicators. This article also analyses corporate non-financial indicators set theory,and comes to the conclusion that Balanced Scorecard is a relatively perfect theory to combine non-financial indicators and financial indicators,and is a more comprehensive reflection of the enterprise valueimportant aspect.This paper attempts to examine the effectiveness of non-financial indicators in the evaluation of corporate performance from the perspective of the manpower of executive compensation management. This paper uses Shenzhen A shares of308companies as research sample, and examines the correlation between internal business processes, information, market share, employee growthrates and corporate performance, and also researches on executive pay in the assessment of non-financial indicators of the company, its internal business processes, information, market share, whether stronger correlation of the employees growth and corporate performance. The study found that:(1) internal business processes, the more perfect the better the current performance and future performance of the enterprise, and executive assessment of non-financial indicators of companies in the compensation contract, the improvement of their internal business processes can be increased to a greater extent corporate current and future performance;(2) the company’s market share, the higher the better performance of the business is current, but the expected performance of the market to its lower, and whether in the executive compensation assessment of non-financial indicators of market share improvement of the business is current or future performance of the correlation between degree of no effect;(3) only in the company of non-financial indicators in the evaluation of executive pay, staff growth and the business is current performance was significantly positively related to executive pay only the assessment of financial staff growth and the business is current performance indicators of companies was no significant correlation. No correlation was found between staff growth and the company’s future performance.