Study On The Performance Evaluation Of CHALCO Based On EVA

Since the 21 st century, with further deepen reform, further market opening, and the increasingly competitive market, it has become a hotspot that how to better manage the enterprise to remain competitive, and in our state-ownership as the mainstay of the market economy, increasing the value of state-owned enterprise assets, improve the competitiveness of state-owned enterprises is particularly important. At this time, State-owned Assets Supervision and Administration Commission of the State Council(SASAC)start to introduce the EVA as the core indicators of performance evaluation system of state-owned enterprises, and EVA as an effective management tool and a performance evaluation system, the most prominent point is to consider the full cost of capital, only taking into account the cost of debt capital and equity cost of capital in order to reflect the true operating performance. Because of EVA’s full consideration to the interests of business owners and managers, profit is not the only measure of corporate performance.In this paper, EVA performance evaluation as the starting point, the use of quantitative analysis, comparative analysis and other methods, based on the theory of EVA The performance evaluation research.The main contents and conclusions of this article is divided into the following six sections:The first part is an introduction. It introduces the research background, purpose and significance of topics, research methods, literature review and so on.The second part is an overview of EVA performance evaluation theory, elaborated the basic principles of EVA, EVA concept includes calculating and adjusting been described separately. On this basis for EVA performance evaluation system were evaluated, it pointed out the advantages and disadvantages of EVA performance evaluation system.The third part of the status quo of EVA Performance Evaluation of a brief description, including a brief description of China Aluminum Co., Ltd(CHALCO), CHALCO performance evaluation index calculation and adjustment, determines the final value of CHALCO’s EVA, and with the traditional financial indicators were compared.The fourth part of the project is mainly based on data analysis of the previous chapter, we found that CHALCO related issues in the use of EVA performance evaluation, such as the CHALCO in the calculation of the EVA accounting adjustments need to be incomplete, SASAC the cost of capital is too simple a predetermined rate and in the implementation of EVA Performance Evaluation related incentives imperfect.The fifth part is the reason the main problems for CHALCO’s EVA performance evaluation in order, including China’s capital market imperfections, EVA in China started late, CHALCO as the central enterprises have a particularity and SASAC unreasonable assessment and other factors.The sixth part of CHALCO how to optimize performance evaluation made recommendations, including complement accounting adjustment to adjust the method to determine the bond yields of equity capital cost rate and the establishment of incentives and EVA Performance Evaluation adapt several aspects in order for CHALCO performance evaluation system for optimization and improvement.Through the study has found the EVA performance evaluation method used by CHALCO traditional financial indicators with respect to more accurately evaluate business performance, but there are related issues, to deal with CHALCO its existing EVA performance evaluation system to be adjusted in order to more real, more fully reflect its operation.