Application Research of Non-financial Indicators in the Evaluation of Enterprise Performance
Year: 2021
Type: conference-paper
Abstract: To combine financial indicators with non-financial indicators to evaluate corporate performance is increasingly valued by the theoretical and practical circles.It is generally believed that the inclusion of nonfinancial indicators in the evaluation system can make up for the shortcomings and deficiencies of financial indicators, thus making performance evaluation more scientific and reasonable, and the scope of application more extensive.This paper studies the motivation of the reform of corporate performance evaluation mechanism, analyzes the advantages and disadvantages of non-financial indicators, and reveals the four principles of non-financial indicators selection: strategic principles, key principles, weak collinearity principles, strong consistency principles.Finally, it puts forward the non-financial indicator measures to improve the enterprise performance evaluation system: increasing the enterprise's comprehensive competitiveness indicator, growth performance indicator and cultural performance indicator.This research enriches the literature on the use of non-financial indicators in China's performance evaluation system, and also contributes to the overall comprehensive performance evaluation of Chinese enterprises, thereby improving the operational efficiency and development potential of enterprises.
Authors: Gang Chen, Wendong Zhao
Institution: Huai'an University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3136959530