Research On EVA Performance Evaluation System Based-on China's Listed Company

With the development of China's capital market, the management performance of the listedcompany has been concerned deeply by the stockholders. Traditional performance evaluationsystems have great limitations because they have ignored the capital cost in the process of thebusiness operation. EVA, as a new performance evaluation index, effectively overcame thedisadvantages of the traditional performance evaluation system and clearly reflected the valuecreated for shareholders. So, it has caused extensive study in the domestic and international theoryand practice circle. Based on the essential of EVA, this paper empirically studied from the EVAperformance evaluation system.Firstly, this paper essentially reviewed the theory base referred to EVA. Then, it carried on adetailed description and comparison between EVA and the present traditional performanceevaluation system. While as, this paper made a collection and description on the present situation ofdomestic and foreign EVA research. Capital market in China is an emerging market, the internal andexternal environment that the company facing needs further improvement. Based on the situation,the paper then gave out some of the author's theoretical ideas in term of the EVA that China wouldimplement. Such as, which accounting subject needs adjust and how to adjust, how to get thepost-tax net operating profit that EVA demands based on the net profit reported in the accountingstatement, and so on. In order to make everyone understand listed company's EVA system moreeasily, this paper, then, utilized empirical analyses on Tsingtao Beer which had implemented EVA.At the end of this paper, concerning the limitation of EVA, it tentatively analyzed theinfluencing factors of implementing EVA in China, and put forward some suggestions about how toimplement this system smoothly.