Font Size: a A A

Performance Evaluation Studies Based On Economic Value Added Of China's Commercial Banks

Posted on:2012-10-15Degree:MasterType:Thesis
Country:ChinaCandidate:N DuFull Text:PDF
GTID:2219330338451230Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
In recent years, economic value-added(EVA) as one performance appraisal tool, has been widely concerned by the scholar and business circles, its application in banks is more and more extensive. As the remaining sum of net profit deduct capital. cost, EVA become key achievement index for shareholder to appraise administrator. Considered the Compared with traditional accounting profit, EVA has not only cost of the debt capital, but also considered the cost of the capital of rights and interests, therefore can reflect the bank performance of truly.Human resources are the core resources of the commercial banks,and the incentive mechanism is the key to determine the success or failure of the commercial banks'operation. Because of the specialties of the EVA indicators,the incentive mechanism of the commercial banks based on EVA takes great advantage on the traditional incentive mechanism.This article begins with the introduction of the signification of the EVA theory,then sets forth the specialties of the EVA indicators,and the relationship between it and the incentive mechanism, build an Economic Value Added(EVA)performance evaluation system.Compared to the traditional performance evaluations,EVA fully considers the cost of equity capital of commercial banks,which is also the risk-adjusted cost.Through learning from the successful experiences of foreign banks,this article puts forward two incentive systems including EVA-based performance pay plan, and establishes a new pattern to pay the employees'bonuses called bonus bank. Through those measures,the commercial banks could mobilize their managers and employees to create value as much as possible,and promote the sustainable development of the commercial banks.This article also analyzes the application practice of EVA in the CCB,and introduces a model of the CCB inciting its fundamental class governor based on EVA indicators.This article includes six chapters.The first chapter is a preface which introduces the research background,and states the domestic and abroad research on the t incentive mechanisms based on the EVA theory,then give the research methods and possible innovations in the following.The second chapter mainly summarizes the EVA theory,then analyzes the relation between the EVA theory and the incentive mechanism of the commercial banks,and introduces the successful experience of foreign commercial banks in the application of EVA theory.The third chapter introduces the status of domestic commercial banking in EVA application and experience of domestic and foreign banks. The fourth chapter analyzes the necessity of applying the EVA in commercial banks in China by analysis of the commercial banks incentives target the problems and advantages of EVA. In the fifth chapter, commercial Bank of China should accelerate the application of incentives for the progress of EVA.
Keywords/Search Tags:commercial banks, EVA, incentive mechanism, Performance evaluation
PDF Full Text Request
Related items