Research On The Performance Evaluation Index System In State-owned Enterprise Based On EVA Theory

Performance evaluation is an important part of modern enterprise financial management.A performance evaluation system for state-owned enterprises is correct and complete directly bearing on whether or not to fully reflect the true operating performance of state-owned enterprises,directly affecting the preserving and increasing the value of stated-owned capital. With the progressing of Reform in China, state-owned enterprises, as the main part of economy, is developing its own Performance Evaluation System.However we have to recognize that the present Performance Evaluation System is still imperfect, which contains dozens of defects.For example. The index calculation has ignored equity capital cost,which make stated-owed enterprise to prefer stock rights financing on certain degree.Too many indicators and complicated caculations make manangers not easly to understand the index.Economic value added (EVA) is a performance evaluation and management system proposed by American Stern Stewart&Company based on the market value of companies. It puts all capital cost of a company into performance evaluation and combines the profit of enterprise owners with that of enterprise runners.EVA makes up for the defects of traditional performance to some extent and reflects the real running performance of an enterprise. EVA index has been applied to many large enterprises abroad, with the in-depth reform of our country's state-owned enterprises and the requirement of modem management model,state-owned enterprises will certainly put value creation as their primary goal.Firstly,this paper recalls the performance evaluation system for state-owned enterprises and analyses the goods and faults of the indicators. EVA index is a realistic choice for China's state-owned enterprise performance evaluation system. Secondly,this paper detailedly explaines the definition of EVA,calculation formula, adjusting items combing with the new accounting law.Thirdly, by comparing EVA index with the performance evaluation index employed by state-owned enterprises at present, the paper holds that it is necessary for state-owned enterprises to choose EVA index as their performance evaluation system.The paper proposes to unite adjusted EVA with traditional performance evaluation system so as to establish a performance evaluation system for state-owned enterprises.Finally, this paper applys a real case in the evaluation index system.and to promote the use of the performance evaluation system, the paper mades some recommendations, combined with the characteristics of state-owned enterprises.