Research On Performance Evaluation Of China Merchants Bank Based On EVA

Whenever the banking industry is at the core of the financial industry,China’s financial and economic resources are excessively concentrated in this area.Therefore,its important economic status and high risks determine that the improvement and improvement of the banking industry’s operation and management will affect the entire industry and even The national economy has an important impact.With the rapid development of China’s economy,more and more foreign banks have poured into the Chinese market.With their strong financial strength,advanced management models,effective marketing strategies,and superior product innovation capabilities,they have achieved many advantages in management,products,and performance.All aspects have brought huge impacts and challenges to our commercial banks.Facing the oncoming challenges,China’s domestic commercial banks must abandon the traditional business model of relying on scale and spreads,and increase the proportion of intermediate business and non-interest income.At the same time,traditional financial indicators are the core The performance evaluation system also showed deficiencies.Therefore,how to build a scientific and effective bank performance evaluation system,improve the bank’s ability to create value,enhance the bank’s ability to resist risks,increase the work enthusiasm and innovation ability of employees,and guide the manager’s goals to be consistent with the shareholders’ goals is to maximize corporate value It has become an important issue that China’s commercial banking industry needs to solve urgently.Compared with traditional performance evaluation indicators,EVA considers operating risks and the cost of equity capital,which can more accurately reflect the true profitability of banks,and help companies to maximize the value of unit capital to achieve maximum corporate value.aims.The application of economic value added(EVA)in China’s banking industry is a bit late compared to other industries.In 2002,China Construction Bank took the lead in comprehensively absorbing the experience of foreign banks and combining its own actual conditions,and was the first to establish it in China.And the EVA performance evaluation system is applied.Although some effects have been achieved in recent years,the application of EVA in China’s banking industry is still in its infancy,and a lot of research and empirical work are needed in the future.This paper first briefly describes the research background,research significance and purpose of EVA performance evaluation of listed banks in China,as well as the current research status at home and abroad.Then it introduces the related concepts and basic theories related to EVA,and compares EVA with traditional performance evaluation indicators to explain the superiority of EVA in performance evaluation.Next,it introduces the application of EVA performance evaluation in China’s commercial banks.Necessity analysis and specificcalculation methods of EVA indicators.Based on the annual report data released by China Merchants Bank from 2014 to 2018,the traditional financial indicators and EVA-related indicators of China Merchants Bank for five years were calculated from the traditional perspective and the EVA perspective.The indicators are put together for a comparative analysis,and the superiority of EVA is derived from the data.Next,a comparative analysis between industries is performed.Based on the annual report data of the top ten banks in 2018,the market value of NOPAT,TC,EVA,REVA and The value of ROE,respectively,has made a comparative analysis between the banks of EVA indicators,a comparative analysis with traditional financial indicators,and an analysis of the influencing factors of REVA,and summarizes the three major changes that can be achieved by the banking industry using EVA.Through these comparative analysis,find out the reasons for the gap between traditional performance evaluation indicators and EVA indicators,and use data to prove the accuracy and superiority of EVA.Based on the combination of the above theoretical content and actual case calculation analysis,this article finally puts forward suggestions for improving the EVA performance evaluation of listed banks in China and suggestions for China Merchants Bank to improve its own business performance.Hope to help China’s commercial banks achieve the goal of improving the EVA performance evaluation system.