The Effect Evaluation System Of EVA Implemented By China Telecom

Central enterprises, as leader, always take dominant place in national economy in China. With the gradual development, simple target management has been no longer able to satisfy the urgent requirement of value management, and the problems have been exposure, including lack of innovation consciousness, great expansion in size but little development in competitiveness, and low rate of capital utilization. EVA can measure performance from the perspective of enterprise value, and help enterprises to develop with the balance between scale and efficiency, and guide them to solve the problems that accumulated for long time. SASAC issued the newest "Interim measures for the assessment of management performance of Central Enterprise" in December,2009. Then EVA Performance evaluation system which in theory would bring many positive effects was established, which means that the central enterprises transfer from the strategic management into value management.EVA is born in consummate capital market of developed country. It needs a further study to verify whether EVA will also perform well on guiding central enterprise, which is in the economic system with Chinese characteristics. EVA is implemented in a relatively short time, so the research of effect nowadays is still at the primary stage in our country. As a super-sized domestic listed central enterprise, China Telecom has many deficiencies, such as low asset use efficiency, poor investment return and bad capital structure. Therefore, on the basis of previous research findings, I choose China telecom as my object of study, and start up with EVA indicator implement objective analysis in order to resolve value drive factor. Based on the performance of China telecom, I will build an evaluation system direct to EVA implementation effec, and also cover the relevant comprehensive evaluate method, and then grade with weight on these indicators by AHP, as well as confirm the grade standard. By this method, I finally evaluate the EVA performance on China telecom for the two implementation years. The EVA evaluation system in this paper can also be assistance for EVA implementation effect analysis in other industries.