Chinese Commercial Banks Ability To Create Value Based On EVA

With the high rapid of liberalization of interest rate, traditional model of commercial bank is faced with acid test. Coupled with the Internet Finance, commercial bank has to change its operation to improve efficiency. However, economic value added (EVA) could play an increasingly important role for valuation in commercial banks. Firstly, the dissertation has displayed the specific information about economic value added (EVA), such as emergency, definition, the way to calculation and the necessity of EVA. What is more, in order to better understand the economic value added, the essay has shown the adjusted accounting statements. And then, the essay has illustrated the factors that will affect the economic value added for following positive analysis. At last, the essay has calculated the economic value added for A Bank of China in Hunan Province. After that, the essay has shown the ability of economic value added for explaining the value made in the commercial bank. Finally, the essay has made a regression to discover the relationship between the traditional accounting indexes and the economic value added. The essay found that the traditional model in commercial bank needs changing, and the diversified development and sustainable development could significant change the economic value added.