Eva Model-based Value Management Study

As a concept, Enterprise's value has been carried out clearly abroad as far back as the middle period of the fifties of the 20th century, and was applied to enterprise's merger and fixing the stock price extensively. Foreign academic and business circles have carried on a lot of research about enterprise's value theories, and have made some important achievements. These achievements mainly concentrate on enterprise's capital structure theory, income of risk and pricing of assets theory, enterprise merge theory, enterprise's value assessment theory and enterprise competitive strategy theory, etc. Among a great deal of theories, the Value-Based Management has already become a kind of new enterprise management mode of the western business circles. Its validity has been proved by a number of international enterprises such as Daimler Chrysler Corp, General Motors Corporation, etc. Combining EVA with Value Based Management and applying EVA to the actual operation of enterprises as a " language " of management of value can make the goal of administrator and shareholder have consistency even more, ultimately reach a goal of " two-win " of administrator and shareholder.This article divides into three parts. The first part starts with enterprise's goal theory and the enterprise's value drivers. Meanwhile the theoretical root of Value Based Management - shareholder's wealth maximization is analyzed. Then this section has also discussed the relations between Value Based Management and the enterprise's value creation and the enterprise benefit correlation. Thus draws out the superiority of the Value Based Management that it is based on enterprise's value and all of the enterprise's benefit correlation can benefit. The second part first has simply introduced the EVA concept and its formula, then elaborated its economic and finance foundations. Finally corresponded with the first part, this section has also discussed the relations between EVA and the enterprise's value creation and the...