Research On Performance-appraising System Of Enterprise Based On Corporate Governance

In recent years, research on corporate governance has gained significant and extensive attention in both theoretical and practical fields. The theoretical foundation of corporate governance went through a process from the principal-agent theory to the stakeholder theory. In order to meet the demands of stakeholders, the importance of external corporate governance keep growing and highlighting. However, current and mainstream performance-appraising system of enterprise is still emphasizing on financial index. Basically, current performance-appraising systems of enterprise are aiming at shareholders’value maximization. This kind of approach ignores the interest appeal of other stakeholders in a border sense. Consequently, the imbalance of stakeholders is certainly to be the natural outcome and the traditional performance-appraising system aggravated the existing imbalance. Meanwhile, according to the research findings from both empirical and normative study, the factors of corporate governance have remarkable correlations with the performance of enterprises. Obviously, it is unreasonable to rule out the factors of corporate governance. On the contrary, due to the remarkable correlations, performance-appraising system of enterprise must be built on the basis of corporate governance.To sum up, traditional performance-appraising system is failed to meet the trend of the development of corporate governance. As far as one enterprise is concerned, it is important and necessary to develop a performance-appraising system based on corporate governance. This paper which starts with the corporate governance theory and combines the performance-appraising theory employs the index method and analysis hierarchy process model in order to structure the new performance-appraising system. So this paper can be regarded as an initiative research on the existing difficulties in performance-appraising under the new situation. In order to protect the benefits of stakeholders, the software YAAHP was applied in this paper so a system consisting of3first class indexes,9second class indexes and29third class indexes was built with the precondition that the new system should balance the financial indexes and non-financial indexes. Embedding the corporate governance into performance-appraising gives the new system a strategic vision and predictive function. Finally, a typical case is also involved in this paper to give a practice note about the whole process of actual operation. And in this case, the effectiveness of this new performance-appraising system also gets verified.