Research On Application Value Of Economic Value Added In The Performance Evaluation Of State-Owned Enterprises

Value Based Management (VBM) consider that only return on invested capital exceeds cost of capital, the enterprise will create value.Economic Value Added (referred to EVA) is a more advanced indicator of valuable management, its core idea is to focus on cost of capital, to encourage valuable creation, to highlight the main business, to improve efficiency of fund using and to consider both interest of investors and operators.Since the start of 2010 SASAC implement the value-oriented assessment of EVA as the core to all central enterprises to guide central enterprises making scientific decision, doing prudent investments and improving the ability to create value,in order to achieve the strategy target of fostering a number of world-class enterprises that having the international competitiveness. How to guide state-owned enterprises both maintaining the necessary pace of development and paying attention to returns on capital and development is the new challenge of performance evaluation works. Through this study, autor hope to give some implications for improving the management of state-owned enterprises and promoting China's goverment to establish the scientific performance evaluation system of state-owned enterprises.Starting from the scientific performance view, this paper study theories that the development process of domestic and foreign enterprises's performance evaluation, state-owned enterprise's performance evaluation and advantages of performance evaluation basing on EVA. Research showed that EVA can change the operation of enterprises fundamentally.This paper also design the state enterprises's performance evaluation basing on EVA, do the applied study of the copper industry leader in China-Jiangxi Copper Company Limited's performance, and put forward measures and suggestions of improving State-Owned Enterprise's EVA effectively and management of EVA's value drivers.