The Study Of Enterprise Performance Evaluation Base On Economic Value Added(EVA)

BACKGROUND AND SIGNIFICANCESichuan local state-owned grain buisness companies have doing long-tine reform. The problems accumulated in the planned economy era have be resolved. The new mechism what is independent operating and responsibility for one’s profit or loss has being builded.Sichuan local state-owned grain buiness companies have changed the profit of a major shift from years of losses to. But in the impact of current grain circulation system, the national macroeconomic policy about grain, and the problems left over by history, the development of Sichuan local state-ownde grain business companies are face with great diffculties and challenges. The problems of strong enterprise management policy dependence, low market competition ability, fall behind management level, are very outstanding.To solve these problems, on the one hand, need to further deepen the reform of the grain circulation system, clear relationship between the central and local grain governance, promote the reform of state-owned grain business companies enterprises, on the one hand require state-owned grain business companies, especially the local state-owned grain business companies, change the traditional mode of operation, to strengthen and improve the management level.In the aspect of enterprise performance evaluation, focus on profit and disperse evaluation iterms circumstance severely have be restricting Sichuan local state-owned grain business companies reform and development. Therefore, whether from the perspective of industry executives and investors of state-owned assets duties, or from the perspective of local state-owned grain business companies, using advanced management and financial theory, studing the method of the performance evaluation of Sichuan local state-owned grain business companies, is necessary and urgent. It has important practical significance to promoting the reform and development of local state-owned grain business companies.MAIN CONTENT AND VIEWThis paper mainly includes the following parts:The first chapter is introduction, which mainly elaborate four questions:the frist is the research background and significance of this article, the second is technology route, the third is the method in this paper, the forth is the main contribution and deficiency of this article. The purpose of this chapter is an introduction of the paper writing background and the overall structure.The second chapter is literature review. This chapter review the abroad and inland theories of enterprise performance evaluation and economic value added (EVA). The last section summarizs this chapter, and puts forward the research direction of this paper. This chapter and the third chapter are the theoretical basis of this paper, which uses EVA theory to building the Sichuan local state-owned grain business companies performance evaluation system.The third chapter analyses the enterprise performance evaluation theory. The first section expounds three fundamental theories of enterprise performance evaluation, which is the principal-agent theory, stakeholders theory, transaction costs theory. The second section points out the guiding significance of those theories, which use in Sichuan local state-owned grain business companies performance evaluation. It’s the request of Sichuan local state-owned grain business companies performance evaluation. The third section analyses the current mainstream method of performance evaluation, such as the traditional financial performance evaluation, performance prism, the balanced scorecard and economic value added (EVA), points out its advantage and problem of applying in Sichuan local state-owned grain business companies performance evaluation. The forth section analyses the applicability of economic value added performance evaluation method(EVA) for Sichuan local state-owned grain business companies. The last section summarizes this chapter, points out that Sichuan local state-owned grain business companies performance evaluation should use economic value added method(EVA).The fourth chapter is case analysing, studies the applying of economic value added(EVA),which uses in Sichuan local state-owned grain business companies. The first section introduces the case company general situation and the existing performance evaluation model. The second section make sure the accounting adjustment issues and the cost of capital of Sichuan local grain business companies, according to the typical EVA performance evaluation method, and calculates the EVA value of the case enterprise. The third section analyses the EVA of the case company. The forth section summarizes this chapter, and points out the general method and the effectiveness of EVA in Sichuan local state-owned grain business companies performance evaluation.The fifth chapter gives some suggestion about the application of EVA in Sichuan local state-owned grain business companies performance evaluation. The first section gives some suggestion about the problem may exist in the application of EVA. The second section studies the effective incentive of the application of EVA in Sichuan local state-owned grain business companies performance evaluation. The third section discusses the EVA combined with other performance evaluation methods in the application of Sichuan local state-owned grain business companies performance evaluation.The main view of this paper is:First, based on the principal-agent problem, balance the interests of the stakeholders, saving transaction costs three reasons, economic value added (EVA) is suitable for Sichuan local state-owned grain business companies performance evaluation.Second, using EVA evaluate the performance of Sichuan local state-owned grain business companies, in accounting adjustment issues, the government subsidies should be treated differently, fixed assets depreciation should adopt method of sinking fund.Third, the application of Sichuan local state-owned grain business companies EVA performance evaluation should pay attention to the improvement of the supporting system. For the local grain administrative department, building the EVA incentive system, can use the means of administrative guidance mechanic--sm, beside the reward.CONTRIBUTION AND DEFICIENCYThis article main contribution in the following aspects:First, analysing the principal-agent theory, stakeholders theory, transaction costs theory, combining the reality of the research object, point out the basic requirements of Sichuan local state-owned grain business companies performance evaluation is maintaining and promoting the benefit of the stockholders and stakeholders, controlling the transaction costs.Second, based on the basic requirements of Sichuan local state-owned grain business companies performance evaluation, comparing the traditional financial performance evaluation, performance prism, the balanced scorecard and economic value added (EVA), points out that the economic value added (EVA) is suitable for Sichuan local state-owned grain business companies performance evaluation.Third, according to the typical economic value added (EVA)method, determine the accounting adjustment issues and the cost of capital of Sichuan local state-owned grain business companies EVA performance evaluation. It’s first time that using EVA method evaluate the performance of Sichuan local state-owned grain business companies.Fourth, gives some suggestion about using EVA method evaluate the performance of Sichuan local state-owned grain business companies and incentive sytem.The deficiency of this paper is:First, more date should be needed,when the author expound some theory. It’s not very sufficient when the author expound some theory, because the evidence is not enough.Second, because of Sichuan local state-owned grain business companies without the listed company of, this paper refer to similar listed companies, use financial leverage to determine the β of Sichuan local state-owned grain business companies. As a result, there is still room for further research on the β of Sichuan local state-owned grain business companies, and the ues of CAPM.Third, this article only analyses the application of EVA in case company. More case should be research, before use EVA to evaluate Sichuan local state-owned grain business companies performance in practice.