A Study On Financial Performance EVA Luation Of Yiling Pharmaceutical Company Based On Modified EVA

With the deepening of economic globalization,The economic environment of our country is undergoing great changes,and the business philosophy of the enterprise is deeply affected.More and more enterprises begin to subscribe to maximize shareholder interests concept,the traditional performance evaluation method without considering actual cost and earnings manipulation space and a series of deficiencies,unable to meet the needs of the enterprise value maximization.Therefore,there are many arguments about traditional performance evaluation methods.In order to maximize company and shareholder value,in addition to the excellent company development strategy,we also had to find a way that the performance appraisal,enterprise financing and compensation incentive plan unified in the aspect of corporate governance,to effectively solve the problem of agency costs that exist in the enterprise and realize the organic combination of management and strategy.Therefore,the concept of Economic Value Added is accepted by more and more enterprises.In this paper,based on YiLing Pharmaceutical industry we try to implement a more scientific performance evaluation method-Economic Value Added performance evaluation method.First of all,this paper describes the relevant concepts of corporate performance and performance evaluation,as well as the theoretical basis of Economic Value Added performance evaluation,discusses the three major performance evaluation methods,which lays a good theoretical foundation for the latter.Next,we will understand the basic situation and current operating conditions of the YiLing pharmaceutical industry,By using the traditional performance evaluation method to evaluate the financial performance of the company from 2012 to 2017,through the analysis of the evaluation process,it is realized that there are many deficiencies in the current performance evaluation method to put forward the necessity of the new financial performance evaluation method.Then,based on the existing performance evaluation method,in order to achieve more scientific and more comprehensive financial performance evaluation,the company needs to pilot new performance evaluation methods.Based on the actual situation of Yilingpharmaceutical company,a financial performance evaluation method based on modified EVA was designed.By using the Economic Value Added performance evaluation method to evaluate the financial performance of the company from 2012 to 2017,the evaluation results are compared with the current performance evaluation methods,and the advantages and applicability of the Economic Value Added performance evaluation method are highlighted.Finally,based on the existing performance evaluation method and the new trial of Economic Value Added performance evaluation methods of analysis,This paper evaluates the implementation effect of Economic Value Added performance evaluation method and puts forward the guarantee measures to ensure the smooth implementation of Economic Value Added performance evaluation method.