Study On The Index System For Performance Appraisal Of Z Company Based On The EVA

With the continual development of the capital market in China, the enterprise performance is influenced much more by various stakeholders. So far, the performance appraisal in the most companies in China is based merely on interests instead of the capital costs, so it cannot reflect the corporate value and shareholder wealth created by the company in a certain period. EVA, as a new index for the performance appraisal, makes a comprehensive analysis on all the capital costs invested by the company and it also makes some necessary adjustments to the illogical accounting statements, thus measuring more precisely the ability of the company to create value.Based on the theoretical analysis, a new index system for the performance appraisal is tailored for the Z Company by applying the EVA index into the company’s operation and management. A comprehensive performance appraisal is made to the Z Company according to the EVA-related indexes, traditional financial and non-financial indexes so as to help the company adapt to the market changes and promote the whole competitiveness.This paper mainly adopts the method of combining normative research and empirical research to study the index system for performance appraisal of Z company based on EVA. The thesis composes of6chapters. The Chapter1mainly introduces the writing background, research significance, literature review and studying methods of the thesis. At the end of this Chapter, the innovative points and characteristics of the thesis are briefly stated. Chapter2makes a summary of the performance appraisal theories and the principle theories and methods of the EVA. Chapter3mainly touches on the current state of the performance appraisal in the Z Company. Based on the brief introduction to the company and its current performance appraisal system, the thesis makes a summing up of some problems that exist in the performance appraisal system of the company and then elaborates on the possible causes of these problems. In the Chapter4, the index systems of the EVA are designed for different levels of the Z Company according to the analysis of characteristics of the company’s operation. The Chapter5analyzes the application of the index systems of performance appraisal in the Z Company. In this chapter, the author, based on the actual statistics, measures the index value of the EVA in the Z Company and analyzed the advantages and disadvantages of the new index system; besides, some issues that should be noticed in the course of the application are also pointed out in the thesis. The Chapter6mainly summarizes the research results, limitations and implications of the thesis.The innovative points of the thesis are as follows:First, the thesis takes an innovative viewpoint. Though a lot of achievements have been made in terms of the researches into the index system for performance appraisal by many scholars both at home and abroad, few of these studies have been ever made based on the EVA. Thus, it is quite innovative to study the current index system of the performance appraisal based on the EVA.Second, the thesis contains innovative empirical content. A complex EVA-oriented index system of performance appraisal tailored for the Z Company is designed and applied by referring to the current state of the Z Company as well as some related theories. The combination of the theory and the practice enhances a great deal the practicality and scientificalness of the thesis.