Research On The Eva Value Based Management In State-owned Power Enterprises

EVA (abbreviation of Economic Value Added) was brought forward by Stern Stewart & Company in 1980's, and it is a new kind of management ideas based on the value.1. Background and objectivesWith the development of the market and the changes of the electronic system in our country, there are more and more challenges before the state-owned power enterprises. So if they want to win in the competition, they have to found an effective management system. EVA is just the right tool for the state-owned power enterprises.As a 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, Simons, 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 was relatively quite perfect. However, in our country, only a few researched into the application of EVA to company and the mature theory system has not been formed until now.2. Brief introductionThe first part analyzes the research background and the significance of EVA, and then summarizes the present situation of EVA research both domestic and foreign; enables the reader to have one basic understanding to EVA.The second part includes the content and method of the EVA system besides the inside and outside environments to use EVA in China.The third, fourth and fifth parts introduce that EVA is different from traditional methods. The purposes of these parts are elaboration and analysis of three main parts of EVA: management system, performance measuring and incentive system It is a kind of method helping to create value. The fifth part gives one case to analysis the EVA management system, and then provides some universal experiences about the Rongxian power enterprise how to introduce EVA successfully.The last part of the article also analyzes the application about EVA and the inside and outside environments to use EVA in our country. It also introduces the problem and solution met in practice. Finally this part gives some advisements about the application of EVA in our country. This part paid much attention to how to use the EVA successfully3. Brief contributionIn the research, the paper analyzes and explores the theory and research with practice of EVA over the world; and further analyzes the problems and put forward the counter measures; then bring forward the Value-based Management System on the basis of EVA, which appropriate to state-owned enterprises, including principles and steps about state-owned enterprises' bringing the Value-based Management System on the basis of EVA into practice the dissertation prospect for state-owned enterprises'carrying out the Value-based Management System on the basis of EVA and its revolution to the traditional system.