Study On Improving A Bank EVA Performance Evaluation Systems

As the globalization of financial market, the development of Chinese capitalmarket and the rising number of Chinese listed commercial banks, more and moreinvestors have showed their interests on the investment value and marketperformance of Chinese commercial banks. It has drawn the attention ofcommercial banks’ shareholders and managers that Chinese commercial banks arenow developing an efficient performance evaluation system called EVA evaluationsystem. EVA evaluation system, which makes up for the shortage of financialindicators while evaluating companies’ performance, has gradually been acceptedby more and more commercial banks.The paper targets on the maximization of shareholders’ profits and focuses onthe application of EVA evaluation system, in order to analyze the content anddevelopment of the traditional commercial bank performance evaluation system.After the comparison of EVA evaluation system and traditional performanceevaluation, the researcher would be able to make conclusions about the shortage oftraditional evaluation system and the advantages of EVA evaluation system. Thepaper uses A bank as an example of the application of EVA evaluation system.The paper is divided into six parts: first, the background and current status ofthe proposition; second, the basic theories and research methods that will be used;third, the current performance evaluation result of A bank; forth, the possiblemethods to improve the traditional performance evaluation system of A bank; fifth,the advantages and disadvantages of both traditional evaluation system and EVAevaluation system based on the results of A bank’s performance drawn by thosetwo systems; sixth, conclusion.