Study On The Enterprise Performance Evaluation System Based On Vbm

With the development of economic globalization and continuous improvement of the modern financial system, companies began to focus more on value creation. Creating value for shareholders as the primary responsibility of management has become to a global standard in performance. In order to achieve the maximization of shareholders value, we must manage the process of value creation through Value Based Management(VBM). This requires the value to be measured scientifically, but the traditional performance system obviously can't meet this requirement, companies need to establish a new performance evaluation system based on VBM.This paper analyzes the challenges that traditional performance evaluation system faced after the brief introduction of VBM, and then introduce EVA performance evaluation system in detail. This article argues that business should establish a new performance evaluation system through the combination of EVA and balanced scorecard(BSC). In the empirical analysis, we use data of listed companies to calculate the EVA and MVA of 100 sample enterprises, and then we compared the correlation of MVA with EVA, and traditional performance evaluation Indexes with PEARSON method and made regression analysis between EVA, MVA and traditional Performance Measurement. Finally, we constructed a new performance evaluation indicator MEVA and discuss its validity in evaluation.Through theoretical analysis and empirical research, this paper holds that it's not enough only to concern about financial indicators in performance evaluation of enterprises, non-financial indicators can explain effectively in evaluating the performance and business development capacity. Therefore, to make a more effective evaluation to business performance corporate performance evaluation system should integrate EVA and BSC effectively.