Application Research of Non-financial Indicators in the Evaluation of Enterprise Performance

DOI

10.2991/assehr.k.210206.022How to use a DOI?

Keywords

Performance evaluation, non-financial indicators, financial indicators, strategic principles

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 non-financial 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.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Gang Chen
AU  - Wendong Zhao
PY  - 2021
DA  - 2021/02/06
TI  - Application Research of Non-financial Indicators in the Evaluation of Enterprise Performance
BT  - Proceedings of the 2020 International Conference on Modern Education Management, Innovation and Entrepreneurship and Social Science (MEMIESS 2020)
PB  - Atlantis Press
SP  - 103
EP  - 108
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210206.022
DO  - 10.2991/assehr.k.210206.022
ID  - Chen2021
ER  -