Study On Performance Evaluation Based On EVA

China has a great development and gets stronger since her reform and open policy and gradually becomes a huge country in manufacturing .On the other hand ,we have to give most profit to the overseas patentee. For example, 20% sale price of every mobile telephone,30% sale price of every computer,20-40% sale price of every numerical control machine tool must be given to the patentee. Innovation becomes a keyword and hot word during 2005 in China. Corporation has substituted government become the main body in technology innovation.To get more profits is the aim for modern enterprise. Technology innovation needs more money and more time, therefore the current profit has to be reduced .Managers don't want to do anything that may reduce his current performance in traditional performance evaluation system."What you get, what you measure". It's a famous adage in evaluation. So this paper aims to find an efficiency performance evaluation standard which can inspirit managers devoting themselves to technology innovation.EVA( Economic Value Added) is a performance evaluation system which was invented by Stern Stewart co. in America in the 1980s.It is based on RI((residual income). Economic Value Added is the financial performance measure that comes closer than any other to capturing the true economic profit of an enterprise. EVA is also the performance measure most directly linked to the creation of shareholder wealth over time. So EVA is the most accurate measure of corporate performance and shareholder value creation over any given period. In...