The Application Research About Enterprise Value Management Svstem Based On EVA

With the continuous development and improvement of China’s capital market, global competition is becoming more and more fierce and transparent. Facing current situation, in order to maintain steady progress in the competitive market, Chinese enterprises needs to keep continuous innovation and reformation. EVA value management system is a relatively new concept in our country, although EVA is already quite mature in foreign practice as been used in many famous enterprises. But the actual situation in China is:2001"Finance" magazine published a list of a value created by EVA from listed companies in China launched by Stern&Stewart Company, this is first breakthrough of EVA concept of enterprise applications in China. Later on, some enterprises started some EVA practices with many problems coming out, as well as some achievements, but there was not any outstanding successful example. This article therefore analyzes EVA’s applications in China comparing with foreign successful examples, and finds shortcomings in import EVA value system and gives some useful suggestions.This article combines theory analysis and case study. Firstly, it explains EVA concept, including EVA’s main findings, concept system, calculation methods etc, in and abroad. Then it analyzes EVA’s explorations in China, some measures taken by the EVA value management system by some of the typical enterprise, EVA value management system implementation outcomes, as well as application problems EVA in China. After that, this article chooses Siemens’successful case of EVA application, analyze this application’s background, procedures, measurements, until finally gets some effective outcome. Siemens imported EVA value system in1988, and completed pilot work and finish promotion in2002. This article pointed out EVA’s positive influence to enterprises value creation based on EVA’s improvements and calculation in Siemens’financial statements from1998-2010, and movements of some financial indicators. Finally, it gives some suggestions of problems exposed in our country on the basis of experiences in and abroad. EVA’s science and applicability has been proved both by theory and practice, but to integrate EVA into our enterprise management system still needs to go through a long way. This article look forwards EVA in our country’s development.This article’s main contribution is to analyze EVA value system’s application situation in China and successful cases abroad, and summaries relative experiences. Hence it is a useful exploration of state-owned enterprises to build EVA new value-oriented management model, and forms positive recommendations to the value of Chinese enterprises. As the writer lack of overall relative knowledge as. well as practice experience, there might be some subjective bias. On the other hand, as the writer cannot get first hand materials, materials from internet might not be so comprehensive, enterprise information disclosure might not be so adequate, all these might leads bias of the overall conclusion. All these deficiencies need lots of readings during writing with the help of university’s database, internet and the help from tutor and classmates.