Theoretical System And Practice Application Of EVA

The economic value added(EVA) has already become the most accurate performance criterion of company instead of the index of profits at present. 《Fortune》Magazine calls it the hottest financial intention nowadays"； 《Harvard Business Review》calls it " total key element productivity"and points out that it is the new need of information age that this kind of idea prevails day by day. The modern financial management theory thinks, the operating objective of the enterprise is that shareholder's wealth is maximized(enterprise value maximizes). But traditional profit index systems have not fully reflected the value that enterprise creates, especially not fully considered fund cost, thus present all sorts of distortion phenomena.But EVA has broken through this drawback. It is a kind of measurement system created on the basis of value. It trully reflects the value that enterprise creates and leads the business goal of enterprise from sale to value. Because of this, the management system of EVA can combine the appraisal index mixed confusingly for the unified standard : Namely whether the business activities create the greatest value for shareholder .But EVA has not been known and applied at home. In a sense, research and application of EVA in our country is still in stage of starting. With Chinese enterprise is riping day by day and the request for the modern management mode , the enterprise of our country must regard it as primary goal pursued to create value too. The main content of this text is describing several respects, such as EVA theoretical foundation, computing technology ,advantages and shortcoming,etc., and combining the financial data of listed companies of our country to carry on preliminary real example analysis, also introducing the theory and instance of salary system design based on EVA. In addition, this text at the concrete national condition of our country, points out that there's some problems to be solved further even in the course of using EVA theory ,and put forward some possible thoughts to EVA used by state-owned enterprises.At last,a simple introduction of DVA(Digital value Added)is given. This text attempts to carry on overall, systematic research to EVA, for the purpose of incorporating the EVA index in real appraisal system and standard , making it really play the role of value management.