Study On The Performance-Appraising System Of Investment Center

Investment center is at the highest level of responsibility center, it has the largest decision-making power, but also bear the greatest responsibility. The performance of investment center determines the rationality and effectiveness of the corporate resources' allocation fundamentally. Along with the further development of globalization, the enterprise has to face rapid and tough competitive environment, especially for large-scale enterprise group and transnational corporation whose subsidiary companies, branches and business divisions are all investment centers. In China, it received extensive attention that the study on the performance evaluation of investment center. At present, the rate of return on investment and the residual income which are traditional financial indicators are widely used in enterprises to evaluate the performance of the investment centers. According to the fact that there are lack of communication between the target of financial performance evaluation and the others' targets, it is very important to the success of the investment center itself and the enterprise to establish an indicator system to evaluate the performance of the investment center timely and accurately.Based on research and practical experience at home and abroad, this paper defines the investment center and classifies the performance of the investment center scientifically. Through analyzing the targets of performance evaluation of investment center, the author sets up an indicator system, which is set up from four respects as follow:financial performance, environmental performance, strategic performance and stock price performance. Finally, through evaluating the sample investment center's financial performance with the method of Principal Component Analysis combines Entropy Method, we get the ranking of them during the chosen period. And the empirical analysis shows that the method of Principal Component Analysis combines Entropy Method has a good role on evaluating investment center's performance, which has certain theoretical value and realistic significance.