Performance Evaluation Of Shanghai Pudong Development Bank Based On EVA

Finance is the lifeblood of the national economy, is the principalpart of banking in the financial industry, actively construct a reasonable andeffective performance evaluation indicators, to improve the businessperformance, has a far-reaching influence on the development of socialeconomy. Due to the particularity of the banking capital structure andsignificant impact on the economic environment, the big Banks face the targetin the process of business scope narrow, ignored the cost of capital, notenough constraints on manager behavior effectively and so on all sorts ofproblems and difficulties. Economic Value Added (EVA, Economic ValueAdded) will be the cost of equity and debt costs deducted from net profit aftertax, consider the opportunity cost of equity capital, is an important index ofweighing factor productivity. EVA in foreign commercial Banks have formedcomparatively perfect use system, the domestic Banks are also focus on bankvalue management concept. In2010, state-owned assets supervision andadministration commission of the state council began in central enterprisesfully implementing EVA appraisal indicators,2013will be the EVA as thecentral enterprise performance evaluation assessment, August18,2014centralenterprises to establish a complete and reasonable salary distribution system.Studied in this paper, on the basis of a large number of literature at homeand abroad, according to the theory of value management, residual income,theory, principal-agent theory, contingency theory as a guide, using thecombination of qualitative analysis and quantitative analysis, comparativeanalysis and other research methods, introduces the essence of EVA, thecalculation formula of basic principle, advantages and limitations, etc. Thenanalyzes the basic situation of Shanghai Pudong Development bank, points out its problems existing in the traditional performance evaluation system,puts forward the necessity of EVA application in the Shanghai PudongDevelopment bank, according to the principles of establishing EVAperformance evaluation indexes, combining the characteristics of ShanghaiPudong Development bank, to adjust EVA formula, determine the totalamount of the net operating profit after tax, capital, capital cost ratecalculation method, constructs the Shanghai Pudong Development bank EVAperformance evaluation index. This article selects Shanghai PudongDevelopment bank in2009-2013, nearly5data for research, summary tocalculate the EVA index, and use EVA index to Shanghai PudongDevelopment bank business performance is analyzed, and Suggestions onraising the Shanghai Pudong Development bank business performance, toimprove its operating performance, promote the formation of internal capitalconstraints. Through the analysis conclusions are pointed out in the paper, theapplication of EVA in future bank performance evaluation system is putforward.At present, although the domestic scholars will be EVA indexes areintroduced to commercial banks to carry out research, but only the use ofEVA basic formula, but not combined with the specific characteristics of thebanks and related accounting subjects adjusted. Innovation of this paper iscombined with the specific situation of Shanghai Pudong Development Bankto adjust its accounting subjects, rational and effective construction of theShanghai Pudong Development Bank of EVA performance evaluation system,and the performance of the past5years were analyzed and evaluated, for thepurpose of business management of commercial banks in China to providevaluable information, improve its operating performance.