Economic Value Added Applied To The Performance Evaluation Of Great River Group

Economic value added(The follows referred to as "EVA")as a new enterprise operating performance evaluation method,although its concept was put forward by Stern Stewart&Co.America in 1982,but because it has some advantages such as Considering the capital opportunity cost and returns to shareholders,Perfect the traditional financial management goal,The guiding role of the cost of capital make the enterprise investment decisions more cautious and science,promoting the sustainable development of enterprises and so on,it quickly accepted and adopted by the world famous enterprises.Although EVA has been introduced in State-owned Key Enterprises of our country(The follows referred to as "Central enterprises")for many years and achieved good results,because of some large differences between the state and other ownership enterprises,the application of EVA in other ownership enterprises,especially in the private enterprises in china still have little mature case for reference.The Guangdong Great River Group Co.,Ltd(The follows referred to as "Great River Group"or "Group")as an private enterprise group of investment holding type,it has 28 subsidiaries in total,among these liquid chemical trade and port storage are the main two business sectors.After the development of 20 years,the Great River Group has established modern enterprise management system,the most subsidiary companies also have passed the ISO9001 quality management system certification,with ascension of management requirements and continuous development of Group,how to use effective methods for performance evaluation is a real problem faced by Great River Group.This paper first reviews the theory and practice of EVA through the introduction of the research situation of EVA performance evaluation at home and abroad;Second,introduces and appraises the current situation of performance evaluation in Great River Group,and do the necessity analysis of EVA applying to Great River Group;Third,introduces the calculation model of EVA in Central enterprises of our country,and does some correction based on this model,Presents a corrected calculation results of EVA in Great River Group,compares the results among the traditional financial performance indicators and the results calculated according to EVA model of the Central enterprises;Last,sums up the revelation of Economic Value Added applied to the performance evaluation of Great River Group based on these studies,discusses how to further improve the performance appraisal system of Great River Group and EVA to realize the maximization of shareholder wealth.