A Study On EVA Performance Measurement Of State-owned Listed Enterprises

Most state-owned enterprises in our country are in important industries and critical fields. Whether they can operate well or not is closely related to the development of economic situation.State-owned Assets Supervision and Administration Commission whose responsibility is to supervise state-owned assets was founded in 2003.Thus the principal-client relationship between SASAC and leaders of state-owned enterprises came into being. How to establish and optimize performance measurement system becomes the key problem. SASAC encouraged enterprises to use EVA as an indicator of performance measurement in 2006 and then required every enterprise to implement it in 2009, which meant a breakthrough in performance measurement system of our country.This thesis reviews the main research articles around the world at first, and then introduces the history of EVA implement. Also, taking 171 state-owned listed enterprises in both Shanghai and Shenzhen Stock Market from 2010 to 2013 as an example, this thesis researches the feasibility, advantages and implementation effect of EVA performance measurement in an empirical way. The conclusions are as follows. First, there is a strong positive correlation relationship between EVA and enterprise value which means EVA can be used in performance measure. Second, EVA has more relative information and incremental information in explaining enterprise value which means EVA has advantages in performance measure. Third, the combination of EVA and other indicators can lead to best explanation to enterprise value which means EVA can't replace other indicators entirely. Last but not the least, the implement of EVA can improve the creative ability, main business competition ability and sustainable development capacity of enterprises.