Investment Value Analysis Of State-owned Banks Based On The EVA Theory

Opportunities and challenges in the context of financial development, China's accession to the WTO after the end of the five-year period of protection, since December 11, 2006 China's banking industry from fully open to foreign banks, foreign banks in the scope of business, geographical scope and the scope of the enjoyment of customers enjoy "national treatment" of foreign banks in the same stage, China's financial institutions are faced with more competitive situation. And occupy about 60 percent of China's banking industry share of the four major state-owned banks, joint-stock reforms have been completed, and the Agricultural Bank in addition to other three have been successfully listed. In this context, the four major state-owned banks to improve corporate governance mechanisms in the same time, it needs to change their operational mechanism at the same time line, the operation and development of the concept of investors and the national capital, to find indicators of scientific and reasonable to carry out their business performance evaluation is imperative.The banking sector as a high-risk industries, and its performance evaluation based on two aspects: First, economic efficiency indicators, and the other is the degree of risk control. The value of scientific and rational approach for investors, creditors and other stakeholders to provide a relatively reliable information on bank performance, which found that the investment value or to avoid market risks. As a result, the evaluation of the results of the traditional indicators difficult to accurately reflect the value created for shareholders, but also did not reflect the results obtained by the operator to pay the cost of risk. To address this problem, this article attempts to EVA-based method of state-owned banks in the analysis of investment value, as a foreign bank in the value of widely used management tools, EVA approach is based on the core idea After accounting adjusted after-tax net profit after deduction of all of the balance of the cost of capital as a shareholder of the operator's assessment of performance indicators, the method of accounting policy choice to eliminate lead to false information and subversion of the equity capital of the concept of no-cost. Integrity of the system, the organic integration, and has a strong theoretical foundation, such as the opportunity cost theory of value theory and principal-agent theory.However, space is limited and available on the practical implementation of interoperability, this paper on the state-owned banks EVA analysis of performance evaluation indicators, the value of the EVA management system to other functions, not to do research. State-owned banks by adjusting the existing financial data, on the EVA method in the application of state-owned banks to verify, at the same time an analysis of its performance and compared the traditional financial indicators, draw on their comprehensive evaluation of their investment value.