Research On Improving Value Management Ability Of Small Medium Enterprises In China

Value Management as one kind of new management ideas and methods is conducive to the healthy development of enterprises, and to strengthen internal management, improve the incentive and restraint mechanism of enterprises, which has been widely applied by western companies. With the development of reformation and opening in China, SMEs (Small medium enterprises) become new growth point in China's national economic development, an important component of the national economy and main mechanism and technical innovations.Because of special national conditions, enterprise management in China's SMEs is more complicated than that in foreign companies and the problems could not be resolved simplify by reference and imitation.For a long time, a considerable number of China's SMEs(Small medium enterprises) are still extensive management pattern and not good at optimally allocating and utilizing of resources, because of lack of qualified management personnel, backward management methods and imperfect management systems. As not having strong ability to adapt and grasp market, it makes SMEs not suit its own development and the market economy in enterprise management, particularly financial management.It is required to find out which method is better to reflect and improve the status of China's SMEs.Firstly analyse the listed companies of SMEs in Shenzhen Stock Exchange with the traditional indicators of performance evaluation. Use factor analysis and factor accessment and obtain the comprehensive financial scores of listed companies. Then analyse with descriptive statistics of companies grouped by industry classification, and observe the profits obtaining capacity of different industries.Secondly have statistical analysis from the perspective of EVA created by value. After determining main adjustment factors, calculate EVA scores of listed companies and compare with the comprehensive financial scores. It is found that there are enormous difference between EVA scores and the comprehensive financial scores. The management achievement is not truly reflected and the profits may be manipulated in nearly half of list companies of SMEs. These companies are low-efficient and do not create wealth for public shareholders.At the same time a survey about value management in Jiangsu, Zhejiang and Shanghai SMEs was made. Investigate the culture-building, training system, rewards assessment and feedback tracking system of samples through questionnaires, especially analyse the development and condition of value management in these SMEs and obtain the key elements of value management in SMEs.Through theoretical and empirical analysis, we can see that the traditional indicators of performance evaluation can not reasonably explain the financial situation of listed companies. In China evaluate enterprise performance by using the traditional financial indicators. In order to further improve the enterprise performance evaluation system, EVA indicators should be introduced. Their reliability and integrality can be analyzed and evaluated. It may has a positive effect and to promote the level of enterprises' operation and managementHow to develop and establish the modern enterprise system to adapt to the market economy becomes the key problem in China's business field, government and academia. The research on the SMES governance is urgent significant in practice and theory.Combined the reality of our country and based on the correct value management method, it is to achieve the effective management of SMEs in China, find out a viable solution to make enterprises better adapt to market changes and realize the value maximization finally.