Research On CREC Financial Performance Evaluation System Based On The Combination Of EVA-BSC

As an enterprise with large total assets,abundant profits and related to the interests of the people’s groups,state-owned enterprises have attracted a lot of attention from the outside world.With the trend and perfection of market economy,in recent years,state-owned enterprises have gradually connected with the global market economy and embarked on the road of international development,while the most iconic state-owned enterprises belong to China Railway Engineering Co.,Ltd.(hereinafter referred to as "CREC"),as a labor-intensive industry,its engineering projects have the characteristics of large volume,and the perfect performance evaluation system for such enterprises to obtain sustainable value creation capacity plays an important role.Along with excellent operating results comes risk,and the assumption of financial performance may probably be altered by financial risk.Therefore,financial performance as well as financial issues should be studied indispensably under this circumstance.In order to exert the value creativity of state-owned enterprises,SASAC implements comprehensive control over the performance management of the company,and recommends that state-owned enterprises implement financial performance management using the Economic Value Added Method(EVA).However,at present,domestic companies have not generally introduced EVA as a measure of performance indicators system,there is only care about short-term earnings and cannot drive management from the strategic level of consideration and other issues,so EVA method does not reflect its effective role in creating enterprise value.The balanced scorecard(BSC)is based on the enterprise strategy,meanwhile,scalability of non-financial dimension evaluation could be strengthened.Enterprise performance evaluation can be generated multidimentionally through intergration of bothaspects.Which can help to achieve the strategic objectives of the enterprise,on the basis of sustainability requirementt of state-owned enterprises.Based on this,China Railway Engineering Co.,Ltd.is a case enterprise studied in this article,the current situation of financial performance evaluation of the enterprise is studied,using the performance evaluation method combining EVA and BSC to design financial performance evaluation,with the aim of establishing a new index from the financial dimension and non-financial dimension to carry out comprehensive evaluation.In the third chapter of this paper,CREC’s financial data in the past five years from the economic growth potential and solvency of four aspects of the use of financial level analysis method to carry out an analysis,to study the data show the changes and the reasons for their changes.Combined with the financial performance evaluation system established by EVA,the real value created by the enterprise after taking into account the cost of capital can be taken into account,and the shortcomings of the development of CREC can be analyzed.Combined with EVA,the selection of indicators at the four levels of finance,customer,internal process management and human resources and innovation,and the use of hierarchical analysis method to assign all indicators,the calculation matrix,and then the final score,impact of changes in non-financial indication toward financial performance is ascertained consequently.According to the research,it is clear that CREC’s financial performance is relatively good,but there are shortcomings such as a single evaluation system and weak solvency.In view of these problems,this paper puts forward some suggestions,namely,to construct a new system of EVA-BSC financial performance evaluation,adjust the debt structure,improve the physique of employees and so on.