Research On Application Of Economic Value Added Performance Evaluation System

With the rapid development of economic globalization, from the nature of capital-seeking and market competition, enterprises need to expand production scale, expand business in the field, this is bound to the growing complexity of enterprise management process. Capital owners in the management of enterprises started stretched himself, had to hire professional management companies, which ultimately resulted in the separation of ownership and management rights. Objectives of owners and managers, and information asymmetry may lead to different operators do not follow the wishes of the owner of enterprises. To avoid this phenomenon, the owner operators have to implement incentive and restraint policies, and to establish scientific and reasonable incentive and restraint mechanisms, operating performance of enterprises must fully understand and properly evaluate. China's traditional performance evaluation system is not well reflected in the value of enterprise, shortcomings, it is difficult as the evaluation reference. In response to this situation, the establishment of a scientific performance evaluation system is of great theoretical and practical significance.Economic value added (EVA) is a value-added business value as measured, considering the cost of capital of enterprises, and traditional accounting in part unreasonable adjustments, eliminating the traditional existence of many performance evaluation disadvantages. Economic value added is not only an effective business performance metrics, or the overall management of an enterprise framework, it will evaluate the ultimate objective indicators and integrate business operations to achieve the maximization of corporate value, is a new performance evaluation tools .In this article, the economic value added evaluation index for the study, analysis of the traditional performance evaluation system deficiencies, pointed out that the traditional financial model must be improved performance evaluation system. Economic added value through performance evaluation method described in detail to illustrate the economic value-added assessment system will become the enterprise performance evaluation system of reality and an inevitable choice in China is proposed to increase the value of enterprise applications, performance evaluation system of economic proposals. Evaluation using economic value added to the DWM to analyze operating results, further information in assessing the company's operating results the superiority of economic value added indicators.