The Analysis Of Performance Evaluation System Of The Central Enterprises

The most distinct feature of modern enterprise system is the separation of ownership and management.After the separation,problems like asymmetric information or inconsistent goals exist between owners and operators.As a rational economic human,operators will use their business control and information superiority,to maximize their own interests,which damages owners' interests.Thus the principal-agent problem is generated.The key to solve it the problem is to establish an effective performance appraisal mechanism,evaluate the operations of the agents correctly,and implement effective incentives in order to have a positive effect in guiding the agents'behavior.China has adopted a system of public ownership economy.The central enterprises are the basis of the public economy,the pillar of the whole national economy,playing a vital role in China's economic development.However,in the central enterprises,there exist cases such as long principal-agent chains or the absence of owners,leading to more serious principal-agent problems of the central enterprises.So it's significant that we should establish a performance evaluation system of the person in charge of the central enterprises to evaluate them objectively and impartially,also make effective incentive mechanism to a positive guiding.This is the key to solve the problem.2010 Performance Evaluation System of Person in Charge of the Central Enterprises(following by Interim Measures)is implemented in central enterprises overall.Its greatest feature is the introduction of EVA performance evaluation indicators,given the highest score.This is an important measure to improve the performance evaluation system,but whether EVA can work well,what problems to remain,how to improve,become worthy issues.This is the paper's starting point to research.1.Research Purposes.The purpose of this study is to examine whether the performance evaluation system in "Interim Measures,can reach the goal of a practical realization of increasing the value of state-owned capital,maximizing shareholder value and corporate sustainable development;to analyze the SAC's adjustments in enhancing EVA in the applicability of the central enterprises,and study their availabilities,shortcomings and improvements to need;to propose incentives for improvement of the performance evaluation;alse to make some policy recommendations for a more extensive application of EVA.2.Main Contents.There are six chapters.Chapter 1 is introduction,it introduces the research background,research ideas and the main contribution.chapter 2 is the theoretical analysis,it defines a few important concepts of this study,then explains the guiding effect of performance evaluation system of person in charge of the central enterprises and EVA basic principles to this paper.Chapter 3 is the key elements of the "Interim Measures".A detailed analysis is made on assessment indicators,assessment standards,assessment methods and ways to motivate,to point out its advantages and disadvantages.In Chapter 4,first is the EVA indicator analysis for "Interim Measures".The SAC simplifies the calculation of the EVA index,explains its rationality,proposes its limitations and improvements,cites the cases,uses new methods to calculate,then prepares this and before;second is EVA bonus bank plan of the central enterprises.It mainly analyzes the reasons and steps with real cases.Chapter 5 is policy recommendations.For the analysis of the whole article on the "Interim Measures",the author will give some reasonable suggestions on how to better use EVA index to assess on performance of person in charge of the central enterprises.3.Main contribution.Based on the research background and research purposes,the main contribution of this paper is sorting the content of the Interim Measures and analyzing its advantages and limitations.At the same time,discuss its using of EVA and propose the recommendations for improvement of the using of EVA.At the end of the article,propose using EVA bonus bank plan in Central Enterprises and put forward some policy recommendations.