Research On Performance Evaluation Of Listed Companies In China's Power Industry Based On EVA

With the advance of globalization,China's economy has also developed vigorously and rapidly.As a state-owned economy,state-owned enterprises play a very important role in the economic arena.With the change of the concept of state-owned enterprises,state-owned enterprises continue to improve their own operating efficiency and management level.December 12,2016,the State-owned Assets Supervision and Administration Commission of the State Council formally promulgated the “Measures for the Assessment of the Performance of the Central Business Leaders”(SASAC No.33)(referred to as the “Assessment Measures”),to encourage enterprises to use EVA performance evaluation indicators to assess business performance which means that the central enterprise performance evaluation system has entered a new stage,step on a new level.The SASAC's assessment of state-owned enterprises is no longer confined to the income and profit which is the core of the traditional performance evaluation system,but the focus shifted to the ability to create value.As China's basic industries,each link(from production to supply and then to consumption)of power enterprises has its particularity.With the gradual improvement of the reformation of electric power system,the power industry is becoming increasingly competitive.In order to remain an invincible position in the fierce power market,it is indispensable to establish a scientific,sound and reasonable performance evaluation system.Based on the above discussion,this paper begins with the principle of EVA,analyzes the basic theory of EVA,the formula,the project which needs to be adjusted and the advantages and disadvantages of EVA.Then,based on the existing performance evaluation methods of electric power industry,this paper deeply discuss the problems of the methods,and puts forward the problems of the methods to improve the EVA performance evaluation.And then this paper calculates and analyzes the EVA value of Huaneng Power International Co.,Ltd.in the last 5 years.On the one hand,the data show that EVA is better than the accounting profit to reflect the business situation of the enterprise,and on the other hand,it puts forward the measures to enhance the EVA of Huaneng Power International Co.,Ltd.Finally,some suggestions are put forward to improve the EVA performance evaluation system of electric power enterprises.This paper aims to improve the existing performance evaluation methods of the electric power industry so that the EVA performance evaluation method can be improved.So make the EVA performance evaluation method can improve capital efficiency,the quality of state-owned assets and establish a fair competition mechanism.