Research On Application Effect Of EVA In Corporations Of Performance Evaluation

EVA (Economic Value Added, referred to as EVA) is the resultof the net operating profit after tax after deducting all in the cost ofcapital. With the development of the capital market, the further separationof ownership and management of the enterprise, thus coming to theprincipal-agent problems. In order to better achieve the desired enterpriseincentive effect, there has been research and establish indicators that canencourage enterprises in the interests of the owner, to unify the enterpriseand the owner of economic. While, EVA just solved this problemproviding a good evaluation tool for enterprise performance evaluation.Therefore, in-depth exploration of application effect of EVA in theenterprises of performance evaluation, finding the advantage of EVA andsolving the problem that EVA is not widely used in business enterprise,have positive significance for the long-term development of the enterpriseand Consistent target of business management and shareholders.The paper, by mainly combining the methods of case analysiscomparative analysis, selecting jiangling automobile as an example, studyand explore application effect of EVA in the enterprises of performanceevaluation. This paper is divided into five parts: the first part is theintroduction, briefly introduced the research background, purpose andsignificance of this paper, the research content and the method. Thesecond part is the summary of theory, briefly introduced the related theories, raising problems for study through the introduction ofthe literature and application status. The third part is case analysis, briefintroducing the case, combined with related theory, through comparativeanalysis with the traditional performance evaluation index and theapplication of EVA of other company, to find that EVA is benefit toenterprise and the factors restricting the popularization and application ofthe EVA. The fourth part is the case inspiration, drawing relevant cases ofenlightenment, through the case analysis. The fifth part is the conclusionand prospect, found the research conclusion, deficiency and prospects forthe future, to improve the performance evaluation system of our country.As the important management and performance evaluation tools ofthe modern enterprise, EVA shows strong vitality. But it has not beenwidely used in enterprises of our country, mainly depending on some ofits restricting factors. So, when EVA is used in enterprises, on one hand,we should continue to promote the advantages of EVA; on the other hand,in view of the factors associated with EVA, all we need to do is tolocalization of EVA, constantly to perfect it and let it play its proper role.