Research On Performance Influencing Factors Of Shanxi Hong Jing Company

With service industry playing an increasingly apparent role inpromoting national economic development and service industry becoming thekey drivers of economic development, China pay more and more attention tothe development of service industry. However, there are many problems in theprocess of service industry’s development so that joint efforts of governmentand companies are needed to achieve comprehensive and rapid development ofthe whole service industry. Thus, finding out the problems and clearing theobstacles should start from each service company. Belonging to leasing andbusiness service, Shanxi Hong Jing Company takes consulting service as itsmain business such as enterprise management consulting, investment consulting,business information consulting and financial consulting. And not only that, ittakes enterprise image planning, travel agent service and houses tenancy as itsother business. However, it reflected poor performance since the companyfounded which resulted from lacking of accurate analysis of performanceinfluencing factors. So the key to solve problems is finding out specificinfluencing factors and proposing suited measures.Based on inducing domestic and foreign literatures of performanceinfluencing factors, this paper proposes its definition of performance andregards principal-agent theory, earnings management theory and informationasymmetry theory as the theoretical basis. Domestic and foreign literatureswhich relate to performance evaluation and influencing factors are reviewed,and then analysis of performance influencing factors of Hong Jing Company isconducted.Hong Jing Company is selected as the research object and29businessservice companies are chosen as contrastive objects. With the analysis of performance of Hong Jing Company and business service companies during2010to2013, this paper then analyze influencing factors from the perspectiveof profit, financial situation and development speed. Finally suggestions ofimproving performance are given to solve problems reflected by performanceanalysis.The results show that the performance of Hong Jing Company presentsrising trend which is consistent with performance trend of business servicecompanies, however, there is still a gap between Hong Jing Company andbusiness service companies. The influencing factors of performance arereflected in profit, financial situation and development speed. According tothese three aspects, this paper puts forward three approaches of improvingprofitability of business, optimizing financial situation and accelerating thespeed of development to develop the performance of Hong Jing Company.