China Shenhua Coal Group Research Of Eva Performance Improvement

Economic Value Added (EVA)as a new target to measure the company’s performance can reflects the values that created by company within a certain period and overcome the shortcomings of traditional performance appraisal target that ignore opportunity cost.This article is based on the theory of EVA.First, this article combining the actual situations of Shenhua Group Corporation Limited, then adjusted Ac-counting to calculate Shenhua Group Corporation Limited’s EVA. Second, this article analyzed the superiority and inferiority of Shenhua Group Corporation Limited’s EVA, and contrasted the differences of traditional performance appraisal target and EVA that used in Shenhua Group Corporation Limited. According to the above analysis, the article revealed the superiority of EVA that used in Shenhua Group Corporation Limited, then contrasted the EVA between Shenhua Group Corporation Limited and Sinopec Group and analyzed influence factor of EVA in different company. Base on comparative analysis between traditional performance appraisal target and EVA, summarized the problems in Shenhua Group Corporation Limited after they adopt EVA, then the article give some suggestions on how to use EVA, such as change the mode of growth, strengthening management and cost control, impose capital controls, enhancement enterprise operation capital management.