The Research Of Coal Enterprise Evaluation On EVA

With the current economic globalization and integration process is greatly accelerated, especially afterChina’s accession to the WTO, both the Chinese enterprises to enter the international market, orinternational enterprises to enter the Chinese market, are requirements of the performance evaluationsystem with international standards. Chinese enterprises now use the traditional performance evaluationsystem, which does not consider the cost of equity capital, ignore the opportunity cost, more conservativeaccounting treatment due to the accounting treatment of "the principle of prudence, one-sided emphasis onprofits, prompting managers to pursue short-term earnings, ignore the risks and rewards, which will not beconducive to the implementation strategy planning, and ultimately affect the company’s long-term andstable development.The company must seek a new performance evaluation system to solve this situation,EVA indicator is the improvement of the traditional accounting indicators, consider the opportunity cost ofequity capital, to accurately reflect the wealth created by the company for its shareholders as well asenterprises added value directly reflects the company’s strategic business objectives.EVA to the investmentdecision-making, performance evaluation and bonus incentives unify EVA positioning the enterprisefinancial management objectives to increase the EVA are EVA increase as the standards of the investmentdecision-making and operating results of the evaluation of the scale, the formulation of the incentivesystemcan also be determined based on how many people EVA. This makes the the EVA businessmanagement based on the concept of value creation, this becomes a simple, direct, and logical consistency,a new performance evaluation system.In this paper, the method of combining theoretical research and case studies on EVA performanceevaluation system study, learn from the successful experience at home and abroad, combined with thecharacteristics of the coal industry in-depth analysis of the EVA performance evaluation system, pointingout that its should be noted that in the calculation ofproject accounting adjustments. Detailed calculationsHenan Shenhuo Coal&Electricity2008-2011EVA and EVA comparative analysis to identify producereasons for the gap in traditional financial indicators, the final analysis of the countermeasures to improve the operating results, draw EVA Performance Evaluation system more accurately reflects the results ofoperations of the enterprise value of the enterprise. This paper aims to provide practical guidance formeasuring the value and evaluation of coal enterprises in coal enterprises operating results EVAperformance evaluation method application in coal enterprises, provide valuable information to themanagement company.