Holding Company The Eva Performance Appraisal System Design

The advantages and disadvantages of EVA and BSC evaluate methods are different, The main features of EVA is to consider all capital costs which includes the cost of equity capital, EVA defined profit from an economic sense,and prompted the operator consistent with the interests of shareholders; BSC introduced non-financial indicators,and evaluate from four evaluation performances, when integrated of EVA and BSC,it not only solvse the problem of BSC lack of concern, but also solves the problem of index of historic, single of EVA.when Integrated of the two evaluate methods will be more perfect.The system of performance evaluated from group to holding companys existence of a series of problems.First,it ignores the of cost of using capital,which results in loss of group assets;Second,it focus on short-term financial indicators,and ignores the long-term non-financial indicators;Third,it lacks of corporate sustainability assessment indicators;Fourth,the relevant financial indicators in the performance evaluated system can be adjusted from adjusting the number of projects of Financial Statements, thus glossing over financial statements, it can creates the illusion of evaluated, and it is difficult for evaluater to understand which is the real situation, if you want to monitor and the corresponding increase in cost.This paper describes background,concepts,theoretical basis of the performance evaluation theories of EVA and BSC,and describes the function,main advantages and disadvantages of EVA in details,comparison of EVA and BSC,Possibility of EVA and BSC can be converged,on the basis of which designs the EVA Balanced Scorecard,and analysis feasibility and barriers of using in the performance evaluated system by holding companies,combines with our specific problems in corporate holding company that exist and designed the EVA performance evaluated system, and using in YTH Group.This paper make the background and significance of research clear by using documents research.analysis of the enterprise value management and summarizes the relationship between the formation of a more comprehensive understanding;by specifical analysis;Analysis performance evaluated problems,from domestic enterprises to holding company and designes performance evaluated system for the company,and provide some countermeasures and suggestions for promotion and application of EVA in China;analyze and describe the EVA performance evaluated system and YTH company's financial position by chart. The most prominent feature of this paper is that I design a performance evaluated system for our company as for the current problem which existence in holding companies, such as too single to indicators, emphasis on financial indicators, assessment of target inconsistencies.