The Research On Performance Evaluation System Of State-Owned Company In China

As it is normal that managerial authority of state-owned company separates from its ownership, agency problem is becoming one of the most important problems of corporate governance. In order to maintain and increase the value of state-owned assets and to reduce Agency Costs of state-owned company governance, a performance evaluation system which can reflect the true performance is needed by the operation of state-owned company. And the evaluation system based on EVA (economic value added) answers for the request.Cost of equity is calculated by EVA index, which makes the operating performance more close to the truth. So, performance evaluation system based on EVA of state-owned company is more available to state-owned company governance, which corresponds interest of owner with interest of manager and leads manager of state-owned company thinks like its owner, creating maximum value on and on for shareholders including state shareholder and maintaining and increasing the value of state-owned assets. So, this paper will construct a performance evaluation system of state-owned company based on EVA, and apply it to the old state-owned company North China Pharmaceutical Company.Firstly, this paper briefly set out basic theories performance evaluation and analysis and comment on several typical performance evaluation method. Secondly, it analysis the actuality of performance evaluation system of state-owned company, pointing out its shortage, and advance the superiority of evaluating performance of state-owned company with EVA. Then, it construct a performance evaluation system of state-owned company, set out the way of calculating each index and the required adjustment combining with the fact in state-owned company in details, and indicate the notice when evaluating the performance. In the end , we evaluate the performance of North China Pharmaceutical Company. LTD with performance evaluation system based on EVA of state-owned company lengthways and horizontally,in order to explain the application of the performance evaluation system more.