The Effect Of The Implement Of EVA Performance Evaluation System For Central Listed Companies On The Value Creation

Central government-owned companies (CGC) are playing a role in the development of market economy, the business performance and ability of value creation of which have been paid attention to by all orders of society. Therefore the Economic Value Added (EVA) which takes value creation as the core idea has come into SASAC’s (State-owned Assets Supervision and Administration Commission) notice from 2004. And in 2010, the SASAC brought EVA into the performance evaluation system for the principals of central government-owned companies. What’s more, the SASAC revised this system in 2012 in order to carry out the value management idea. But it still needs to be researched how well has this performance evaluation system played and whether this system has improved the ability of value creation of central government-owned companies.At first, this dissertation will introduce the background, significance and frame of research. Then this dissertation will organize and analyze the literatures which are related to the research about EVA and the value creation and the research about the implementation effect of this performance evaluation system. After this, this dissertation will deeply analyze the performance evaluation system which is implemented by SASAC in order to know the evaluation methods, the characteristics and original intention of this system, which is the basis for next work. At last, this dissertation will comparatively analyze the differences of operation of central government-owned companies before and after the implementing of this system. Then this dissertation will examine whether the implementing of this system has improved the ability of value creation for central government-owned companies by regression analysis.