Abstract
Relative performance evaluation is an important part of performance evaluation and compensation incentive research. Following the logical relationship among the existence, influence factors and economic consequences of relative performance evaluation, this paper sorts out the frontier research at home and abroad in recent years, focusing on the analysis and summary of the selection criteria of the peer enterprises and economic consequences of relative performance evaluation. On this basis, this paper looks forward to the future research direction. This paper has certain enlightenment significance for understanding and grasping the research dynamics, focus and future research directions of relative performance evaluation.
Highlights
The relative performance evaluation aims to eliminate the systematic part of the company’s performance by determining the peer groups’ performance so that the non-systematic part of the company’s performance can fully reflect the manager’s efforts without interference from external common shocks, optimizing performance evaluation and compensation incentives
Domestic research focuses on the investigation of the existence and influencing factors of relative performance evaluation based on traditional industry classification standards, but the investigation of family enterprises is different from the research based on independent enterprises abroad
Based on the deficiencies of existing research, this paper proposes four rearch directions, which are conducting the existence test from the type of sub-enterprise, further studying the reasonable selection criteria of reference enterprises, and analyzing the research framework influencing factors and further studying of the economic consequences of relative performance evaluation
Summary
The relative performance evaluation aims to eliminate the systematic part of the company’s performance by determining the peer groups’ performance so that the non-systematic part of the company’s performance can fully reflect the manager’s efforts without interference from external common shocks, optimizing performance evaluation and compensation incentives. In the part of the existence and influencing factors, foreign studies question the traditional industry classification standards, and propose classification criteria based on text analysis or enterprise life cycle. Domestic research focuses on the investigation of the existence and influencing factors of relative performance evaluation based on traditional industry classification standards, but the investigation of family enterprises is different from the research based on independent enterprises abroad. Based on the deficiencies of existing research, this paper proposes four rearch directions, which are conducting the existence test from the type of sub-enterprise, further studying the reasonable selection criteria of reference enterprises, and analyzing the research framework influencing factors and further studying of the economic consequences of relative performance evaluation. I will summarize the shortcomings of the existing literature and propose four research directions
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