Research On The Performance Evaluation Of Domestic Listed Bank Based On EVA

Banking is dominant in the domestic financial industry,how to improve the management level and operating performance of the banking has a profound impact on development of the whole national economy. In recent years, with the rapid development of the domestic financial industry, a large number of banks have implemented shareholding system reform by listing to seek a broader space for its own development. Bank listing will bring many benefits, however, it also puts forward higher requirements for the management level of banks, based on this background, a fair and reasonable assessment on business performance for the listed banks is becoming increasingly important, and the study on performance evaluation of banking has drawn a lot of public attention.In a long time, there are some traditional methods on performance evaluation to evaluate operating performance of banking, which has been unable to fully meet the needs of evaluation in today's banking industry, being limited by the existing shortcomings of traditional methods. The EVA method as a new type of performance evaluation, which defines profits of bank from the perspective of shareholders, and comprehensively measures operating costs, risks and other factors in banks. It encourages banks to achieve value maximization of the business objectives, thus being gradually accepted by the users. Therefore, from the perspective of EVA , the paper studies construction and application of performance evaluation system of listed banks.The paper makes the following main results:First of all, on the basis of presenting the bank performance evaluation theory and exploring the advantages and disadvantages of traditional methods on performance evaluation, the paper introduces a new method to evaluate performance which called EVA ,then describes and analyzes concept, feasibility, suitability and application status in detail, and points out EVA plays an essential role in performance evaluation of domestic listed banks. Secondly, by adjusting the traditional EVA formula, the paper designs EVA model for domestic listed banks, then selects the data from 14 domestic listed banks during the period 2007 to 2009, and evaluates its business performance by using EVA method, in addition, these banks are divided into three parts of state-owned holding listed commercial banks, national middle and small joint-stock listed commercial banks, urban listed commercial banks, the paper conducts a classification analysis to compare its operating conditions, the results shows that the ICBC and China Merchants Bank's get optimal performance, and the urban listed commercial banks get poor performance in general practices. Finally, based on the EVA-oriented method, the paper proposes countermeasure to improve operating performance of domestic listed bank, hoping to provide useful ideas for improving the performance of domestic listed banks .