Eva-based Value-based Management System

EVA (the abbreviation of Economic Value Added) was brought forward by Stern Stewart & Company in 1980's, it is a new kind management idea based on the value.As one kind of management tool, it may comprehensively appraise the enterprise achievement and reflect all aspects of the value management. It is the key factor to create wealth for shareholder.For its formidable function, some international well-known big companies, including the Coca-Cola, Simens, Sony and so on have introduced the EVA management system and obtained great success. Up to now, there are more than 300 famous companies which have introduced the system.In foreign countries, EVA has been studied more than 20 years and the fundamental research has been quite perfect relatively. However, in our country only few researched into the application of EVA to company and the mature theory system has not been formed until now.What the article has studied includes the content and method of the EVA system besides the inside and outside environments to use EVA in China. The purpose of this article is elaboration and analysis of three main parts of EVA: management system, performance measuring and incentive system .It consists of five parts:The first part analyzed the research background and the significance of EVA, and then summarizes the present situation of EVA research both domestic and foreign; enable the reader to have one basic understanding to EVA.The second, third and fourth parts introduced that EVA is different from traditional methods. It is a kind of method helping to create value. It also introduced the problem and solution met in practice. These three parts paid much attention to how to use the three main factors of EVA successfully.