The Research On Implementation Effect Of China State-owned Enterprises’ Performance Evaluation Based On EVA

In China Today, the central enterprise is the economic development leading, control thelifeblood of national economy. In China’s accession to the WTO ten years, China’seconomy comprehensively with the world, Chinese enterprises especially the centralenterprises participate in international competition further, the central enterprise’s businessperformance more and more become the focus of foreign and domestic investors.Thecentral enterprises with national allocation of resources, preferential policies, etc. But theuse of the state-owned capital is not "free".As the shareholders of the central enterprises,the state investor want to the value of their invested capital, create more value, realizingthe maximization of shareholder wealth. But now business performance evaluation systemof the central enterprises in our country is not perfect, can not accurately reflect theenterprise live assessment index. How to accurate measures of the central enterprises’performance,form the appraisal system the which with value creation as the core and leadthe central enterprises transform to value management, became the focus of the nation’sbackers.In2010, State-owned assets supervision and administration require, to fullimplementing the economic value added (EVA) evaluation in the central enterpriseperformance evaluation methods. EVA concept only thought when corporate earnings thanall of the cost of capital that realize to create value for shareholders.To EVA index system,will guide the state pay more attention to equity cost of capital, strengthen its mainbusiness, transformation of the mode of operation. Now, EVA being practiced for twoyears or so, the effect of the implementation, what problem is, how to make improvement,is a question worth thinking about, it is also the purpose of this article selected topic.Thefirst part of this article summarizes the EVA research background, significance andresearch at home and abroad were reviewed.The second part overviews the enterpriseperformance evaluation related theory and make an overview of the development processof the state-owned enterprises performance evaluation,which make theory foreshadowingfor later. In the third part, this article introduced the background and the meaning of EVA,accounting adjustment issues and calculation method, and expounds the superiority of the index. In the fourth part, through the case analysis of the effect of EVA in the state of theapplication, as well as the existing problems and Suggestions for improvement.Theoryresearch of this paper is aimed at how to improve the effect of EVA in the implementationof the central enterprises, speed up the central enterprises to value management.