Research On The Application Of Power Grid Enterprise Performance Appraisal Based On EVA

Power grid enterprises in the national economy is the most important pillar of the industry, and economic development and social development are closely related, for economic development and social progress has essential role in promoting, at the same time, power companies also related to the people’s livelihood. Strengthen power grid enterprise development, not only to the country’s economic security and social stability and people’s daily life and also are closely related. As a kind of advanced productive forces and the basic industry, it is the world’s economic development strategy in the development of key priorities. However, with the continuous power system reform in depth, how to properly and objectively assess business performance, and guide enterprises toward a higher goal to develop stronger, the grid companies are facing a major challenge. At present, performance evaluation, on the one hand because of excessive reliance on financial indicators has been widely questioned, such as DuPont analysis, in another aspect, the evaluation method, although some consider the financial and non-financial indicators between the organic combination but for non-financial indicators as well as how to refine the weights between each index to determine how, and not a wealthy effective solution, thereby affecting the effectiveness of their marketing and use. EVA as a more advanced performance evaluation indicators, not only taking into account the cost of equity capital, and the traditional performance evaluation methods for the deficiencies have also been further improved, can objectively reflect the company’s value creation, it is beneficial for power companies the operating performance objective and fair assessment.This paper introduces economic value added (EVA) concept, value added in the economy with the existing performance evaluation methods were compared and analyzed on the basis of proposed economic value added and the characteristics of power grid enterprises combine to establish a EVA-based evaluation system for grid enterprises performance evaluation methods, and the use of analytical hierarchy process (AHP) for each indicator assigned by correcting explore out for a more effective corporate performance grid Western Region evaluation method for the regional power grid companies to provide a new value creation approach.This article of six chapters, each chapter following major elements:Chapter1Introduction. Describes the economic value added (EVA) theory of state power enterprises in Sichuan AB in which the use of the research background, specifying the purpose and significance of research, research ideas and content articles, articles of innovation and inadequacies.Chapter2Literature Review. Home and abroad through research literature aspects, introduced foreign and domestic EVA as a performance evaluation of the advantages and significance.Chapter3Overview and EVA performance evaluation theorize. First on the performance evaluation methods are outlined; followed by the introduction of value added indicators of economic calculation and adjustment issues, including related economic value added calculation method, the main accounting adjustment and after adjustment calculation formula and by comparing analysis of the DuPont analysis, KPI performance appraisal system, the balanced scorecard, economic value added of these four methods for evaluating performance advantages and disadvantages, including the evaluation of the benefits of economic value added as well as the evaluation of economic value added disadvantage, obtained the economy increasing the value of evaluation methods can be more objective and comprehensive overall performance of the enterprise for scientific evaluation.Chapter4is based on EVA Sichuan AB State Power Company Limited Application Analysis of performance evaluation. First, the grid companies use EVA performance evaluation conducted usability studies, first on the grid traditional enterprise performance evaluation methods of analysis, followed by combining the characteristics of power grid enterprises description of economic value added as a performance evaluation at the feasibility of introducing power grid enterprises, and correction related indicators and implementation of critical control point. Next comes the Sichuan AB State Power Corporation’s basic situation and the existing performance evaluation methods, and their advantages and disadvantages are analyzed. The second is through the EVA with existing performance evaluation methods comparison, indicating the necessity of implementing EVA. The third is compared with the average level in the province, indicating that AB is located in the Western Region of Sichuan Electric Power Co., Ltd. in the United States the same cost of capital invested in the case, creating the efficiency is very low. Finally, Sichuan State Power Corporation AB actual situation as the background, try to amend proposed for calculating EVA index combined with social indicators, Sichuan AB State Power Corporation’s performance accurately evaluated.Chapter5, in order to point on the grid companies use EVA evaluation should be noted that problems are analyzed and corresponding countermeasures put forward a sound indicator.Chapter6, promotion and application prospects.The main contribution of this paper are:In this paper, empirical comparative analysis and case method of combining the performance evaluation for the EVA system for a specific analysis, on this basis, the proposed EVA and social indicators are combined to construct a more accurate state meet Sichuan Electric Power Co., AB company, based on EVA performance evaluation system. In the article, try to describe common problems, make the article discuss research issues related to broader, more practical, able to have the same attributes of all domestic, especially in the Western Region of the power grid enterprises to implement business performance based on EVA Evaluation provides a practical solution.