Abstract: Study of method for evaluating firm investment efficiency is an unexplored domain by now both at home and overseas,and there have been no items concerning investment efficiency evaluation in firm performance measurement method. Under such condition,firm development evaluation demonstrates obvious irrationality. After summarizing the basic principle in investment evaluation based on the evaluation methods and basic ideas in related fields,a method of investment efficiency evaluation at the firm level is presented in this paper based on technical efficiency evaluation established in (k,y) space. Here asset technology and operational efficiency of the firm can be identified,and firm labor productivity can be decom-posed into such two elements,which make it possible to trace the transition of the firm state from the view of asset technology and operational efficiency. Index of investment efficiency established on such information can identify the marginal effect of investment action on production efficiency,which combines the methods of investment efficiency evaluation used in macro economy and in micro concrete project,and can accurately evaluate the real performance in investment action.

Key words: investment efficiency, asset frontier technology, operational efficiency