Eva Used In State-owned Enterprises Incentives

The reform of state-owned enterprises (SOEs) is the key issue of the reform of Chinese economic structure. To consummate the incentive system of state-owned enterprises' operator is essential for deepening the reform of state-owned enterprises. Through the analysis and research of the application of the indicator of EVA in incentive SOEs' operators, this thesis tries to explore some routes and methods.Based on a systematic summary of incentive theory and practice in a world view, the thesis applies an approach combining both qualitative and quantitative analyses, discusses the necessity to introduce EVA indicator into SOEs operators' incentive theory and related layout design applied with EVA indicator. Also, the thesis analyzes the basic condition for the application of EVA and puts forward some policy suggestions to practice EVA. The thesis consists of four parts. The main content is as follows.The introduction presents the necessity to practice the operators' incentive theory and the application of EVA. Through both the necessity of agency in the modern enterprise system and the significance of the human capital of operators, it analyzes the necessity to launch the operators' incentive practice, gives rise to some realistic meanings of EVA indicator and its application to SOEs.The first chapter introduces the theories and practices of operators' incentive in a world view. It presents some important international theory, including western traditional theories of operators' incentive and the theory of the firm. In the part of operators' incentive practice, it presents two representative operators' incentive systems of American and Japanese. Based on main theoretical views of current famous economists, it quotes and narrates some Chinese theories. In relation to the part of operators' incentive practice, it discusses some basic operators' incentive practices in different reform periods, then analyzes the present situation and existing problems of SOEs' operators' incentive practices so as to provide a good platform to explore the application of EVA in SOEs' operators' incentive practices.The next chapter gives a detailed analysis of the incentive mechanism innovation, which is based on EVA, for the operators of the state-owned enterprises. Firstly, the paper introduces the concept of EVA indicators and its calculation; then analyzes the EVA incentive mechanism and the incentive mechanism design for the operators of the state-owned enterprises; lastly, appraises the advantages and drawbacks of the incentive modes for the EVA operators. So, this chapter is the keystone of the whole paper. In this part, the author emphasizes the calculation of the EVA indicators and the maneuverability of the EVA incentive project.The third chapter of the paper analyzes the premise of implementing EVA incentive measures, and gives some advices about the implementation of the EVA incentive measures. The basic premises of implementing EVA incentive measures in state-owned enterprises include complete market mechanism, normative corporate governance, effective market agencies and credible performance evaluation data. In terms of the reform and opening up practice of our country, the author thinks that the implementation of the EVA incentive mechanism at the present stage should start from building complete law system, forming the corporate culture and melting "humanism" into the corporate management.The central idea of the EVA incentive mechanism is to make the operators of the enterprise become the "would-be owner"; to make the operators become the material shareholders and then make them care about the company like the real shareholders of the company. Therefore, the author thinks that through implementing the EVA operator incentive project, we can set up the philosophy in the enterprise that only if the state-owned capital can be saved and value-added, the benefit of the operator would be saved and satisfied and then based on the constant development of the enterprise, all parties would benefit from it. In addition, through forming the effective operator incentive mechanism, we can promote the transition of the management mechanism of the enterprise, and strengthen the state-owned economy in the market competition.