Research On Enterprise Performance Evaluation Based On Value Creation

With the accelerating process of economic globalization and the rapid development of information technology, the competition among enterprises is showing a growing trend. However, there are many drawbacks of our current performance evaluation system based on traditional financial indicators, such as only short-term performance evaluation, ignoring the cost of equity capital, not revealing the cause of value creation and so on, which can not meet the requirements of enterprise management. Therefore, how to set up a scientific and rational enterprise performance evaluation system, which fits China's national conditions, has become the focus of attention in theoretical and practical circle of China.This paper serves China's enterprises as research subjects, bases on the actual situation in our country, against the existing problems of enterprise performance evaluation system, employs the method of combining theoretical analysis and empirical research, tries to build a value creation-oriented performance evaluation system, combined the advantage with EVA and balanced scorecard card, provides a reference to improve management, enhance economic efficiency and achieve business objectives for Chinese enterprises.First of all, this paper studies the meaning of the business objectives and its evolution process, and advocates maximizing enterprise value as a business objective. Secondly, introduces the concept, elements and evaluation procedures of performance evaluation, and summarizes the main results of performance evaluation. Thirdly, puts forward design ideas of the performance evaluation system based on value creation, on the basis of the analysis of existing deficiencies of our current performance evaluation system. Fourthly, systematically expoundes the building process of performance evaluation system based on value creation, from three aspects of the selection of evaluation index, evaluation method, the determination of evaluation criteria. Fifthly, this paper makes the use of the breakthrough method of statistical analysis to analyze and screen the financial indicators impacted on EVA significantly, lays a foundation for the choice of financial dimension indicators of performance evaluation system based on value creation. Finally, taking a manufacturing company G as an example, calculates the weight of performance evaluation index system based on value creation, and carries out a comprehensive evaluation for business performance.