Funded Research, Assessment Index System Of Large Enterprise Groups

Performance evaluation, an important part in perfecting company management, plays a basic role in construction of incentive system and constraint system. It is also a management system that changes as the management thoughts change. The performance evaluation system is "a suit of signal system" transferring the owner's object to the manager, thus the manager's efforts will accord with the objects. In fact it reduces the agent cost by narrowing the information gap. Agent cost is both an internal function of performance measurement and a criterion in constructing the performance evaluation system.The measurement system constructed by Financial Department of China in 1999 has marked the primary establishment of enterprise results assessment. But the agent cost keeps high because of diversified assessment main bodies and inconsistence between the appraisal objects and the management objects caused by dispersed ownership of state capital. Different bodies have different measure system and the investors should be the main body after a perfect ownership system has been established.To reduce the agent cost, we must weigh the value created by the manager as precisely as possible. Enterprise performance is related to the managers' efforts and it is also affected by such factors as the market structures, decision-making power and the market risk. With these factors are considered, can the assessment completely reflect the contribution of the managers. The enterprise value includes the short -term economic performance and the long梩erm development and strategy that can substitute each other to some extent. Economic Value Added (EVA) is a good tool to measure short-term economic results, which can accurately weigh the value created by the manager with low agent cost because it can deal with the influence on the short-term economic performance caused by market risks and research-developed investment. It is application of the first principle of performance measurement system that the results index should reflect the efforts made by the managers to the maximum. The agent cost may also keep low, if we assess the enterprise's long-term development value from the relation between enterprise and its patrons and staff, the power of learning and innovation and the management system construction. Because according the second principle of the appraisal system, the agent cost will further decrease if we add some other result indices to income incentive contact.Performance evaluation has strong personality; it is very hard to construct a perfect one containing concrete appraisal indices that suits every enterprise. Considering both the fact that index assessment system is an internal demand for reducing the agent cost and the Chinese reality, this paper puts foreword a frame of results system on the basis of the EVA theory and the Balance Scorecard theory.