The Impact of Management Performance Evaluation Rating Information on Management Efficiency in Public Enterprises

Abstract

This study empirically verified the relationship between the management performance evaluation grade of public enterprises and management efficiency. Public enterprises disclosed by the Ministry of Strategy and Finance for management performance evaluation from 2015 to 2019 were analyzed, and those with a low debt ratio and operating cash flow ratio were excluded from evaluation. As a result of the analysis, the coefficient value of the public enterprise management evaluation grade showed a significant positive (+) value, indicating that the higher the management evaluation grade, the higher the management efficiency. Although the management performance evaluation is used as a management tool to achieve various policy objectives, such as a burden on the person being evaluated and conflict-inducing politics within the organization, it has a relatively high cost control effect such as work efficiency and financial budget performance, and it is well received in the management performance evaluation grade. This means that the improvement of the overall management process and the transparent and efficient operating effect of the accounting system prevail.