Research On Financial Performance Evaluation System Optimization Of A Stete-owend Group’ S Subsidiaries

Performance Evaluation directed by Enterprise Group for subsidiaries is an important part of the management. Effective performance evaluation system can ensure the objectivity and scientificity of the evaluation results, and it is an important guarantee to promote the healthy and long-term development of the Group so as to effectively promote development of enterprises.A state-owned group has more than forty subsidiaries, whose investment involved in the field of power, pulp and paper, cement, finance, tourism, real estate and high-tech as well as other industries. In 2011, developed from the current enterprise performance evaluation system for central and Henan provincial enterprises, the performance evaluation for the subsidiaries was released. Since 2012, the new evaluation management system has been carried out. As a wholly state-owned company belonging to the Henan provincial government, how to further improve the financial management of the subsidiaries, and optimize performance evaluation system of the subsidiaries means a lot to a more objective and fair evaluation of the performance of the subsidiaries.This paper summarizes the related theory of enterprise performance evaluation system, and recalls the relevant research results, then analyzes the limitations of the existing state-owned enterprise financial performance evaluation index system.Based on this analyzing and focusing on the limitations of the current financial performance of state-owned enterprises the index system, this article optimizes its corresponding evaluation index as follows: increasing economic value added rate, cash ratio and Sales Cash Ratio, as well as inventory turnover ratios, revising the Accounts receivable turnover to receivables turnover. The author selects a power subsidiary and cement subsidiary of A Group as empirical objects, makes a comparative analysis of the differences between the financial performance of state-owned enterprises before and after optimization evaluation system, the results show that the corrected state-owned enterprise performance evaluation system can reflect the real situation of the company’s financial performance in a more scientific and rational way. Combined with the results of empirical research, the paper puts forward countermeasures to the improvement of the financial performance to subsidiaries of A Group, and introduces the inadequate and prospects of this research.Through this study, the author hopes to give a reference for other researchers in this field. Since the space is limited, there are many elements not involved, for example, the weight of the Four types of index, management index and evaluation methods etc.