The Research Of Rural Credit Cooperatives Agency EVA Performance Evaluation

As an important link of the enterprise management，Performance management laidthe foundation for the development of modern financial enterprise. Rural creditcooperative is a kind of special financial institution in the banking industry in China; itplays an important role in servicing area "three agriculture" economic development,promoting the rural financial market stability, and promoting the rural financialdevelopment. Especially since2006, rural credit cooperative precedes a new round ofreform and innovation. Rural credit cooperatives gradually move towardscommercialization and commercialization. This puts forward new requirements for theperformance evaluation of rural credit cooperatives. From the point of view of theindustry management, the establishment of performance evaluation system ofcomprehensive and objective will be the inevitable requirement of perfecting creditcooperatives legal institutions supervision and management and promoting scientificdecision. As a new type of performance evaluation standard, EVA performanceevaluation system overcomes the shortcomings of the traditional index overestimateprofits for fully considering the equity capital cost. So it will be more objective andaccurate in reflecting business performance and risk level of the rural credit cooperatives,and it is advantage to establish effective performance management system. As a result,this paper adopts the EVA performance evaluation system to research the performanceevaluation in rural credit cooperatives legal person institutions.The core of the problem in this paper is that using EVA performance evaluationsystem to research the performance evaluation for rural credit cooperatives legal personinstitutions. First of all, on the basis of defining the related concepts of creditcooperatives and EVA performance evaluation, established EVA performance evaluationindex system which is suitable for rural credit cooperatives legal person institutions. Andthen choose118rural credit cooperatives legal institutions in XX province as theresearch sample to research the EVA performance and it’s drivers for rural creditcooperatives legal person institutions. Finally, puts forward some measures which will promote application of EVA performance evaluation and improve the level of EVAperformance in the rural credit cooperatives.The main conclusions of the paper’s research: firstly, according to the calculation ofEVA and EVA return rate in XX Province Rural Credit Cooperatives legal mechanism,there is a trend of steady rise of EVA and EVA return rate in XX Province Rural CreditCooperatives legal mechanism from2008to2012.And the management performance andvalue creation ability improved steadily. And the by the principal components analysis,since2008, the operating performance in XX province rural credit cooperatives showed asteady growth trend, the asset scale in rural credit cooperatives and its structure and loanquality become the main drivers of this trend. Lastly, form the performance of ruralcredit cooperatives legel institutions, we can concluded that the main driving factors ofrural credit cooperatives in XX province EVA performance are the balance of loans, therate of bad loans, capital adequacy ratio and loan loss reserve adequacy ratio. And theperformance of EVA is the most positively related to loan loss reserve adequacy andcredit cooperatives, and then the others have a negative correlation to the EVA of ruralcredit cooperatives. In the four factors, the capital adequacy ratio has the most significantimpact on the EVA performances of rural credit cooperatives, and becomes the mostimportant driving factors which influence the EVA performance of the main creditagency. And the second factors are the rate of bad loans and loan loss reserve adequacyratio. In addition, according to the computational process of EVA and EVA rate of return,risk adjusted net operating profit after tax; total assets and the cost of equity capital arealso important factors which affect the credit agency EVA performance.