| The performance evaluation has been one of the core systems for the sustainable growth and development of firms or organizations.And it has become perfect due to the continuous evolution of its theories and practices in various countries.However,the theory and methods of performance evaluation have changed greatly as Kaplan and Norton put forward balanced Scorecard theory in 1992 and made it develop and applied to practice subsequently.After more than 20 years of improvement,the balanced score card(BSC)has changed from a performance evaluation tool at the beginning to a strategic management tool or system,it has expanded into a complete strategic and operational management platform in recent years.By reviewing the relevant literature on the BSC,it is found that there are not a complete and operational theoretical basis when it comes to the study on the relationship between the performance indicators of each dimension of BSC and the employee compensation and firm value.This paper studies intensively the relevant theories of performance evaluation such as sustainable development theory,human-oriented theory and principal-agent theory,etc.so as to extend the study of current literature.And two mathematical models,i.e.optimal linear compensation model of multiple performance indicators and dynamic model of firm value evaluation have been derived,which constitutes as the basis for the hypotheses of this paper.The paper uses the performance evaluation model based on the BSC to(1)empirically study the the performance indicators of four dimensions of BSC on the employee compensation of China Shenghua Shendong Coal Mine;(2)test the performance indicators of four dimensions of BSC on firm value.Through studying the China Shenghua Shendong Coal Mine and the listed firms of coal mining industry,the paper extends the current literature and provides empirical evidences for current literature,and the results of the study constitute the references for the management.The main findings of the study are as follows:First,according to the full sample regression(January 2016-20 March)testing the impact of performance indicators of five dimensions of BSC on the employee compensation per capita of China Shenghua Shendong Coal Mine,In terms of the number of significant explanatory variables,the higher the degree of linkage,the higher the significant explanatory variables.The practical significance of this empirical result to the management is what to get,that is,to measure and link what.As far as the organization is concerned,"What you measure is what you get" will affect employee behavior through performance evaluation and then the organizational performance as well.Besides,according to the sub-sample regression of different periods(January 2016-December 2016,January 2017-March 2018),the number of variables of great significance were slightly less than that of in the full sample regression,and their significance is weaker than that of in the full sample regression as well.It is showed that time is also a potential factor which affects the explanatory variables.Moreover,the effect of performance indicators of the five dimensions of BSC on the employee compensation lies in the difference-value rather than the level-value.There is a significant positive relationship between the level-value of employee compensation and the number of months of mining,which means that there are many factors in the connotation of the level-value of employee compensation are positively related with time.The significance of the empirical results of the regression with the sample from China Shenghua Shendong Coal Mine is that,each dimension of BSC has a significant positive impact on employee compensation which is consistent with the current literature.Moreover,they prove the validity of the indicators of each dimension of BSC in motivating employees,which supports the ideas of humanism theory.Providing employees with the expected compensation and at the same time using various performance indicators to bind them promote a win-win situation for employees and firms.This paper pays particular attention to the impact of the BSC on employee compensation,mainly on the impact value of compensation per capita rather than the level-value,which has been neglected and rarely mentioned in the existing literature.Second,regression with the sample of listed firms in coal mining industry.In the regression,the performance indicators of each dimension of BSC on the value of listed firms is tested in terms of their influence on stock price and stock return respectively.According to the regression results of the impact of the indicators of each dimension of BSC on stock price,most of the financial dimension indicators are significantly positive affect stock price no matter with full samples,sub-sample in different time periods,sample firms whether or not are the China's top 500 and with different established years in the regression.Among them,the par value of shareholders' equity account per share is significantly more than the excess earnings per share.The customer dimension is also significantly positive,which supports the hypothesis of this study.The number of years of firm establishment in the growth index is significantly negative,which does not support the hypothesis of this paper.The human capital index is significantly negative in the sub-sample with firms which have been established more than 16 years,and neither of the two process efficiency indicators(fixed scale reward efficiency and variable scale efficiency)has significant influence on firm value.In addition,the performance indicators of each dimension of BSC on the stock returns of listed firms is tested.According to the regression results,the par value of the financial dimension indicator i.e.equity account per share is still a significant positive factor no matter with full samples,sub-sample in different time periods,sample firms whether or not are the China's top 500 and with different established years in the regression.However,the supernormal earnings per share are only significant in the sub-samples with firms which have been established more than 16 years,and the coefficients is opposite to the expected direction.Another significant explanatory variable i.e.the years of firm establishment of a firm in the learning growth indicator is significantly positively related with the return on stock of listed firms in China's coal mining industry generally in the regression.However,in the sub-sample of 2014-2017,Human capital indicator and the two process efficiency indicators(fixed scale return efficiency and variable scale efficiency)are significantly negatively related with the return on stock of listed firms in China's coal mining industry,which is not consistent with the expectation,the reasons need to be further explored.In conclusion,it can be found that the regression results of different dimensions of BSC and the two measurement indexes of firm value are more diverse with listed firms in coal mining industry as the sample,compared with the regression results from the regression with China Shenghua Shendong Coal Mine as the sample.With stock price as the dependent variable,the coefficients of financial and customer dimensions are significantly positive,which supports the research hypothesis of this paper.The coefficient of learning growth dimension is significantly negative,but the coefficient of the process efficiency dimension is not significant.With stock return rate as the dependent variable,the coefficient of the financial dimension is still significantly positive,but not as significant as it in the above regression,which supports the research hypothesis of this paper.The coefficient of the years of firm establishment in the learning and development dimension is generally positive,which supports the research hypothesis of this paper.The two process efficiency indicators are significantly negative in the sub-sample from 2014 to 2017,which does not support the research hypothesis of this paper.While,the coefficient of the customer dimension is not significant.This is the first paper that uses the large sample of listed firms to explore the relation between the different dimensions of BSC and firm value.There are some regression results which are not consistent with the expectation,and which to be further explored with the purpose of enriching the connotation of BSC.Moreover,the regression results of this paper can be the initial references for future empirical research in BSC using large sample regression.This paper is innovative in five aspects.First,it integrates relevant theories of performance evaluation such as sustainable development theory,human-oriented theory and principal-agent theory,etc.in the discussion of the basic and core theories of the BSC,defines the relationship between the performance indicators of each dimension of the BSC and employee compensation and firm value and provides mathematical theory basis for the relationship,which constitutes as the basis for the hypotheses of this paper.Second,current BSC literature mainly selects the sample firms from European and North American regions,few other firms from the world are selected.As for the industries of sample firms,there are mining firms but not coal mining firms in existing literature.Moreover,the paper selects the largest coal mining firm in Asia to study,which is unique and different from current literature that takes the small and medium-sized firms to study.Therefore,the selection of the sample firms for study is innovative.Thirdly,the current empirical literature on BSC has been confined to the study on only one firm,large sample study on the relationship between each dimension of BSC and firm value is rarely examined in current literature.However,this paper takes the listed firms of coal mining industry in China as the sample,and empirically studies the relationship between each dimension of BSC and stock price and stock return rate,which extends current literature in the selection of the sample and expands the knowledge frontier of the BSC,and contributes to the integrity of the literature.Fourth,the research methods used in the current BSC empirical literature are generally homogeneous,most of them use interviews and case studies,and rarely use long-term secondary data to analyze in the case studies.This paper select the data from the the medium and long term secondary database of the firms studied,and analyze them in panel data model,integrates the dynamic information into the regression coefficient estimation.Therefore,the estimation of the coefficients is more reliable and useful.In addition,this paper uses the research method of market basis to analyze the research topic with the the panel data of listed firms in coal mining industry,the empirical results obtained can directly extend the knowledge boundary of BSC,which has certain enlightenment significance to the future empirical research and theoretical literature.Fifth,the current empirical literature mostly focuses on the planning and decision-making in advance in the whole management process of a firm,seldom discusses the post-control and evaluation stage,which means that the effect of the results of the BSC on organizations are not well documented.In addition to understanding the planning and decision of the case company in advance,this paper directly studies the post-control and evaluation stage of the whole management process of firms.Following the performance evaluation system based on the BSC of the sample firms,the paper empirically tests the effect of performance indicators on employee compensation.These innovative research focus and empirical evidence fill the deficiency of current literature. |
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