The Research On Performance Evaluation Of MD Group Subsidiary X Based On EVA

Since China’s reform and opening-up, with the development and prosperity of economy and the global economic integration, as well as economic resources and management resources being relatively abundant, the scale of the enterprise is able to make significant leaps and more and more multinational groups and large group companies begin to form. The enlargement of the scale of the company is not only beneficial to the integration and utilization of enterprise resources, but also effectively reduces the risk of bankruptcy and enhance the enterprise’s competitiveness. However, the expansion of scale makes the enterprise management become more and more wide width, which not only makes it more difficult to manage the group enterprise, but also increases the management cost. Thus, how to choose a way used by parent company to make effective performance appraisal for its subsidiary has became a prominent problem day by day.For electric appliance manufacturing industry, the domestic home appliance is large, but there are so many domestic private enterprises that the competition is very serious. Choosing and applying a reasonable performance evaluation system is the inner demand for home appliance manufacturing to achieve sustainable development and makes a enterprise to be undefeatable in the competition. MD group is an influential domestic home appliance manufacturing company with its hundreds of subsidiaries which has been using EVA performance evaluation system to evaluate its subsidiaries in recent years. Though some achievements are made, some problems are also exposed. This paper takes the performance evaluation used by MD group as example to calculate the performance with EVA performance evaluation indicators, and analyze it combining with the traditional accounting indicators to and offer some proposals combining with the traditional accounting indicators.This paper has four parts. At first, the background and significance of the research is introduced and the theoretical knowledge about EVA performance evaluation at home and abroad is summarized. Research ideas and methods in this paper are proposed and characteristics and innovation of this article are pointed out. Secondly, some related concepts and theoretical basis about performance evaluation are introduced. Definition and formulas of EVA and its superioties ared describled. Then, the basic situation of MD group and its subsidiary X and the industry they belong to are introduced. EVA from 2011 to 2014 of company X are calculated according to the formulas and the results are compared and analyzed combining with traditional accounting evaluation index. Finally, problems of EVA in X company’s performance evaluation are summaried and corresponding improvement measures are proposed.Innovation and characteristics of this paper is taking performance evaluation of parent-s ubsidiary corporation as standpoint, taking the home appliance manufacturing company as a n example to analyse, describing the calculation of EVA indicators of subsidiary X, comparin g EVA indicators and traditional performance evaluation indicators, summarizing the advant ages of EVA indicators, pointing out its shortcomings in X company’s practical application, a nalysing economic results related to these shortcomings, proposing internal and external imp rovement measures and suggestions, having some reference meaning for other companies in the same industry.