Discussion On The Improvement Of Central Enterprise Performance Evaluation Index System In China

With the continuous development of market economy in China, under thebackground state-owned enterprise, especially the central enterprise, reformssubstantially. Because the central enterprise takes an important position in thestate-owned enterprises and holds national economy and people’s livelihood andnational economic lifeline, our nation pay more and more attention to performanceevaluation of central enterprises in China. In2003, the State Council had set up aspecial State-owned Assets Supervision and Administration Commission to oversee thedevelopment of the central enterprises, to evaluate the performance of the centralenterprise. The index system of central corporate performance evaluation is alsoadvancing, developing and improving constantly, and the index of central enterpriseperformance evaluation is also increasing gradually. In order to make the objective, fairand real central enterprise performance evaluation, and at the same time to set up acentral enterprise performance evaluation index system which accords with the situationof China, the state-owned assets supervision and administration commission has takena series of measures to achieve this purpose. Although the evaluation of centralenterprise performance, which is based on the perspective of value creation, has alreadybegun, the entirety and level improved trend of the central enterprise performanceevaluation index system is irreversible. It takes a solid step for improvement of thecentral enterprise performance evaluation index system based on value drivers.Over the years, scholars have studied and explored the performance evaluationindex system of state-owned enterprise and the central enterprise. As on December28th,2009, the State-owned Assets Supervision and Administration Commission promulgatedthe newly revised Interim Measures for the assessment of the operational performanceperson in charge of the central enterprises, it fully implied the economic added valueassessment on the basis of the original assessment in the third term of office of thecentral enterprises, which marked the SASAC(stand for State-owned Assets Supervisionand Administration Commission)had noted to be based on the value creation theory toassessing the results of evaluation of central enterprises. Although these studies andtheoretical system gradually reflected in the value of economic value added andBalanced Scorecard Creation theory, the current performance evaluation index systemstill ignores the impact of capital structure on corporate performance and does not reflect the cash flow factors, can’t really reflect the integrity and hierarchy of the valuedrivers. Therefore, we must fully and detailedly analysis of the value drivers of thecentral enterprise in China, embodying entirety and hierarchy of the index, and improveperformance evaluation index system for state-owned enterprise especially the centralenterprise in our country.In view of this, according the limitations of the current central enterpriseperformance evaluation index system, we propose the concept of comprehensivevalue-driven factors, using the method of analytic hierarchy, comprehensive scoringmethod, theoretical research and case studies, combined performance of China’s centralenterprises evaluation index system. In order to build a central enterprise performanceevaluation index system based on value drivers’ perspective, we take China Unicom asthe case to comparatively analyze improvement the central enterprise performanceevaluation system before and after, to make the theory research results getting moreapplication value and maneuverability.This paper is divided into six parts:The first part is an introduction. it first introduces background and significance ofthe papers. And secondly, it is the domestic and international literature review of thestate-owned enterprises and the central enterprise performance evaluation index system,based on the lack of research in the literature. On the basis of this research ideas, we getresearch methods and the basic framework of this paper.The second part is the theory overview of the central enterprise performanceevaluation. Mainly it expounds the definition of central enterprises and role positioning,and the central content and character of enterprise performance evaluation, anddiscusses the evolution of the central enterprise performance evaluation index system.The third part is on the basis of the composition and character of the current centralenterprise performance evaluation index system discussed, pointing out that the currentlimitations of the central enterprise performance evaluation index system, that it doesnot fully reflect the value drivers and the index hierarchy lack drive progressiverelationship, lack of internally consistent system associated choice and evaluation relytoo much on the financial statements.The fourth part will introduce the level of financial value drivers and non financialvalue drivers into the central enterprise performance evaluation index system.According to the level of financial value drivers and non-financial value drivers, weimprove enterprise performance evaluation index system, to make the central enterprise performance evaluation index system more integrity and hierarchy.The fifth part is the analysis of the application of the central enterpriseperformance evaluation system which based on value drivers improved. This chapter,according to the China Unicom, take the three merger financial statements to calculatethe financial indicators, take the analytic hierarchy process method and rated law onfinancial indicators carried calculation of the weights and ratings, use hierarchicalanalysis and the questionnaire survey method to carry non-financial indicators,comparative analyze the central corporate performance evaluation index system beforeand after improved, provide a model for the central enterprise of thetelecommunications industry to meet their own performance evaluation index system.The sixth part is the conclusion and the application prospect of analysis. Thischapter bases on theory carding and application analysis of the above results, draws theresearch conclusion of this article, at the same time, also points out the future trend ofthe development of the follow-up study, for the central enterprise performanceevaluation index system of continuous improvement provides a train of thought.