Study On Internal Performance Evaluation Index System Based On EVA In Manufacturing Enterprise

At present, China's internal performance evaluation index system mainly based onaccounting profits and took the relevant indicators of financial statement as the core. Thispractices pursue capital and profit increase but neglect the value creation, whichobviously deviate from the modern enterprise system that take the shareholder valuemaximum as management target. If the enterprise want to improve the operationactivities efficiency, it should establish an internal performance evaluation system thatwith guidance of shareholder value. Therefore, it is need to carry out the value creationidea in the process of setting performance evaluation index that is the core of evaluationsystem. Just based on this necessity, this paper introduced EVA, researched the designingof internal performance evaluation indexes, explored the lack of existing evaluationindex systems, with guidance of the principal-agent theory, the behavioral science theory,the system theory and the economic profit theory, with the manufacturing enterprise asthe research object, then designed the internal performance evaluation index systembased on EVA and application. It has a great significance for managers to perfect theinternal performance evaluation system and make decision.First, this paper summarized the research situation of the internal performanceevaluation and EVA at home and abroad systematically. And then it integrated thetheories of principal-agent, behavioral science, system and the economic profit, whichwere the basic theories of this paper.Second, this paper designed internal performance evaluation indexes based on EVA.The design of indexes contained three steps: construction of EVA centers, EVA valuedriver analysis and the setting of evaluation indexes. EVA centers were established basedon the determination of department function and analysis of enterprise value creationchains. EVA value driver factors was formed based on the decomposition of EVA. Andthe evaluation indexes were designed through analyzing and integrating the imposingeffect channels of every EVA value driver factors.Finally, this paper established internal performance evaluation indexes system basedon EVA for A company and researched the application. According to A companymanagement state and organization structure, the paper constructed EVA centers and setthe evaluation indexes. Then the paper studied the application, including selectevaluation standard and evaluation method reasonably and strengthen consciousness ofEVA, which provide valuable reference to manufacturing enterprises.