Research On The Effectiveness Of Third Party Evaluation Of Financial Performance In Ningxia

The 19 th National Congress proposed to "fully implement performance-based management of financial budgets",which reflects the great importance the country attaches to performance-based management.Since its introduction,the third party evaluation of financial performance,as an important link of financial budget performance management,has been carrying the good vision of improving the use of financial funds performance,promoting the government credibility,promoting the transformation of government functions and promoting the realization of the modernization of governance system and governance capacity.However,in recent years,more and more scholars have found that there is a certain gap between the actual effectiveness of third-party financial performance evaluation and the expected vision of good governance,which is related to the improper handling of the relationship between the two parties in the evaluation process.The relationship between the two parties in the third party evaluation of financial performance can be explained by the principal-agent theory.The entrusting government usually manages the trustee by setting up incentive,punishment and supervision external control mechanism.Although the agency cost is reduced to some extent,due to the improper way,scope and intensity of government supervision,there are certain deficiencies in the professionalism,independence and initiative of third-party institutions,leading to the problem of "formalization" in the evaluation process,which affects the effectiveness of the third-party evaluation of financial performance.Contrary to the principal-agent theory,the butler theory can complement and perfect the principal-agent theory.This theory emphasizes mutual trust,consistent interest goals and proper cooperation between the principal and the agent,and pays more attention to internal incentives and other ways to manage the cooperative relationship between the two parties.Therefore,this paper innovatively studies the effectiveness of the third-party evaluation of financial performance from the perspective of the integration of the principal-agent theory and the butler theory.Based on the research framework of "practice-theory-practice",this paper takes the third-party financial performance evaluation report of Ningxia from 2019 to 2021 as the research object.According to the scoring analysis of the report by experts,certain quality problems are found in the report,and in-depth interviews are conducted with the staff of the institution that compiled the report on these problems.Through the interview content,it is found that there are some "formalization" problems in the formation process of the third-party evaluation report of financial performance,which will reduce the quality of the third-party evaluation report,and then affect the effectiveness of the third-party evaluation of financial performance.Based on these "formalized" problems,the paper analyzes the in-depth theoretical explanations,seeks ways to solve the problems,and finally gives suggestions on the integration of the principal-agent theory and the butler theory,which is implemented into the micro and macro evaluation practice,so as to solve the insufficient effectiveness of the third party evaluation of financial performance,improve the performance of financial fund use,and optimize the allocation of funds.We will promote comprehensive reform of performance-based budget management.