Research On The Index System For Performance Appraisal Of THGD Company Based On The EVA

As China's economy enters a new stage and its economic structure is constantly optimized and upgraded,it is both an opportunity and a challenge for enterprises.Performance appraisal and value evaluation of enterprises have been a difficult problem in accounting circles,which is the core of enterprise management system.Traditional performance evaluation mostly takes profit as the basis of performance evaluation index.It is the operating profit after deducting capital cost and tax from net profits,so it is difficult to reflect the real economic value of enterprises.Economic Value Added(EVA)is not only a financial index for evaluating the ability of value creation,but also a powerful tool for enterprise value management and a more accurate performance evaluation.THGD Company is a vigorously growing new and cutting-edge high-tech enterprise.The rapid development of high-tech industry has brought great opportunities to THGD company,but the current performance appraisal method of THGD company is still based on traditional financial indicators.This single performance appraisal method no longer meets the needs of modern management of the company.In order to solve this problem,this paper introduces EVA performance indicators into the current performance appraisal methods,and combines the idea of Balanced Scorecard to select relevant evaluation indicators to set a performance evaluation index system based on EVA.This system not only has great significance for improving the performance management level of THGD company,but also could be applied for other high-tech enterprises.This paper first introduces the theory of performance appraisal.And then,it describes the current situation of performance appraisal of THGD company,and finds out the defects of the current performance appraisal system.On this basis,it puts forward the necessity of introducing EVA appraisal into THGD company.Then,according to the current situation of company performance appraisal,taking EVA as the core,combining with the theory of balanced scorecard,we select auxiliary indicators from four levels of finance,customers,internal business processes and learning growth,and design a new performance appraisal index system suitable for the company.Finally,the results of performance evaluation of THGD company based on EVA are analyzed and evaluated,and suggestions are put forward.It shows that EVA can evaluate the performance of THGD company more accurately,which is helpful for the company to define its own position,formulate appropriate development strategies,and improve the management level of the company and enhance its market competitiveness.The innovation of this paper lies in:first,the innovation of the perspective of the paper.Although domestic scholars have done a lot of research on the application of EVA in performance evaluation,they mainly concentrate on central and state-owned enterprises,and have little research on high-tech industry.In this paper,EVA index is introduced into THGD company for performance evaluation,which also has a certain reference significance for the application of EVA in high-tech industry.The second is the innovation of empirical content.Based on the current situation of THGD company and relevant theories,this paper designs a composite performance evaluation index system based on EVA,which meets the needs of THGD company,and improves the shortcomings of the original performance evaluation system of THGD company.