A Research On Value Management Strategies Based On EVA Improvement In Telecom Enterprises

In2010, the SASAC of the State Council announced to the central enterprises the full implementation of EVA assessment and the relevant measures and regulations since2010, which means the arrival of the value management era. With EVA replacing ROE and being introduced as the performance evaluation index in parallel with profit (EVA holds the core position in the new appraisal system for its weight and score standard), the management performance appraisal system for people responsible for the central enterprises has undergone substantial changes, entering the new stage of EVA evaluation or the value management.. Therefore, understanding EVA, discovering the difference between EVA and the performance appraisal index system based on profit, realizing the value management and its significance with EVA evaluation as the core and finding the way to promote the enterprise EVA is the key to successful transition of the central enterprise management mode. This paper first describes the theory of EVA and the application status of its performance indicators at home and abroad, the difference between EVA and the performance appraisal index system based on profit and their advantages and disadvantages. Then it further looks for the short board of the A Telecommunication Company the author works for based on an analysis on its present situation and finally offers suggestions on how to accelerate the improvement of internal management in A Telecommunication Company and promote its enterprise value and core competitiveness.This paper includes six parts:the first part is an introduction to the background and significance of this paper, the second part introduces the literature summary of EVA theory and the advantage of EVA performance evaluation system; The third part, reference dupont analysis, based on EVA telecom enterprise value analysis system, the fourth part analyze all the EVA index driving factors of A Telecom Company with DuPont analysis method and through the analysis finds out the EVA short board in A Telecommunication Company; at the same time sensitivity analysis is made to find out the key driving factors to upgrade its EVA; the fifth part puts forward financial management advice to promote the EVA and offers specific measures to optimize the assessment and incentive mechanism, improve the comprehensive budget management system and implement capital value management examination and so on; the sixth part is a summary.