Research On Effectiveness Of Implementation Of Economic Value Added Index In The Central Enterprises

The central enterprises which are the main part of our national economy have been in leading position in the economical market. On the basis of the central enterprises to continue to bigger than before, at this stage, we face the main issue that is how to shift from traditional profit targets oriented to Value Management growth of capital expenditures and the growth of epitaxial M&A, and finally this can make the Central Enterprises to achieve stronger and stronger. So along with the three factors overlap and interweave which are the shift of the post-crisis era of the international economy, the turn of the third term of the person in charge of the domestic central enterprises in, and our country looks forward to achieving the globalization strategy-oriented of the Central Enterprises. On January1st,2010, Economic Value Added (EVA) index which is a new performance evaluation indicator formally incorporated into the central business performance evaluation system. At this point, This Event is marking the Central Enterprises to enter a new era of value management. Abroad, the research on EVA system is more mature, but the domestic research is still late, and early EVA index in the introduction to China soon to leave quietly, so that people doubt the applicability of EVA in China. It has been a year that Indicators of Economic Value Added in the full implementation of the central enterprises, whether it applies to China’s central enterprises? After the implementation, does it achieve the desired effect, and guide central enterprises from profit-oriented to value-oriented step by step? In what ways are the impacts of enterprises? These are the community concern. In this context, it is very necessary to study the effectiveness of Economic Value Added indicators since the full implementation of the central enterprises, and propose some advice and strategies about how to use Economic Value Added to promote the value management of China’s central enterprises.The content and framework of this paper are as follows:The first part is an introduction, It overviews the background and significance, summaries review of research status on innovation and research methods and thesis. The second part is the basic theory and History combing of implementation of the central enterprises of the EVA, firstly It introduces the four theoretical basis for the central enterprises using economic value added index, The four theory is MM theory, Principal-Agent theory, Strategic Management theory and the Risk Management theory; then It introduces the meaning of Economic Value Added, and the main adjustments of EVA; finally sorts out the historical evolution of the Central Enterprises to the implementation of the EVA. The third part is descriptive statistics which the implementation of economic value added indicators, and summarizes the status of central enterprises to implement EVA. Then It is theoretical analysis which is from the standpoint of operating performance and management performance impact of the implementation of EVA in the central enterprises, and summarizes the main difficulties and obstacles in the implementation process. The fourth part is the empirical test; it selects the latest sample data of the listed central enterprises, and indicators of design variables, by constructing a regression model to test the effectiveness of the implementation while using the software of Eviews, SPSS and so on, and also robustness tests. The empirical results show that the implementation of EVA is obviously effectiveness to the status of profitability, assets of operating conditions, capital increasing the value of condition and solvency position and the implementation of EVA is obviously ineffectiveness to the status of main business growth and the status of the investment behavior. Also By the implementation of the policy implications of economic value added, the implementation of EVA is markedly improved to the status of profitability, capital preservation and appreciation situation, the status of the solvency situation of investment behavior and assets of operating conditions, But It is not demonstrated to improve the trend to explain the intensity than before the implementation of growth status on the main business and assets of operating conditions explanatory power. Part V summarizes the conclusions and puts forward policy proposals which are designed to promote and enhance the effective of implementing the Economic Value Added indicators and speeding up the value management of the central enterprises, and prospects for future research directions.The innovation and characteristics of this paper is in two aspects, First is the content of the study, the paper has created a new chapter in the systematic analysis of all aspects of management and internal governance effect the EVA index in China’s enterprises, It is a daring to explore and try. And systematic analysis of the constituent elements of the EVA impact on enterprises, while It summaries the main difficulties and obstacles of economic value added indicators in the implementation process of the central enterprises in-depth. Second is the Empirical perspective, different from the relevant paper of EVA, this paper selects specific time and specific objects, It selects the annual data of2009-2010of the listed central enterprises to give a comparative analysis and from six aspects, including the profitability of the conditions, main business growth, capital increasing the value of status, assets and operating conditions,the situation of investment behavior and the debt risk profile of the comprehensive effect of the implementation of the EVA test, and puts forward suggestions to promote the further development of the application of EVA in the central enterprises. This study contributes to the implementation of the EVA index in the central enterprises fron theoritcal, and accelerating the transformation of the central enterprises to Value Management.