The Study On The Application Of EVA To The Performance Evaluation In Electronic Information Enterprises

The electronic information industry has been developing explosively since1900’s, andbecame the most strategic industry of a country. The development of electronic informationindustry can directly reflect the competitive level of a country’s science and technology.China’s electronic information industry is also developing rapidly, becoming the pillarindustry of China. To maintain the core competitiveness of China’ electronic informationenterprises in the global marketing competition, we must establish a scientific, reasonable andcomprehensive performance evaluation system. In electronic information enterprises, theinnovation ability and some other non-financial performance is as important as financialperformance, and the future developing potential and value creation ability are as important asthe profit ability in current period. Thus, introducing evaluation indexes to reflectnon-financial performance and value creation ability and establishing the performanceevaluation system based on EVA of electronic information enterprises has important practicalsignificance to improve the level of performance management in China’s electronicinformation enterprises.This paper firstly hackled the studies on performance evaluation and EVA from foreignand domestic scholars, and analyzed the present situation and problems of performanceevaluation in China’s electronic information enterprises based on the related concepts andtheories. Secondly, after analyzing the advantages of EVA and the feasibility of application ofEVA through empirical analysis, combining the characteristics of electronic informationenterprises, this paper established the performance evaluation system based on EVA inelectronic information enterprises. Finally, this paper applied the performance evaluationsystem to the ZTE, corp, determined the index weight by AHP, and analyzed its performanceaccording to the data of2009-2012. The main researching work and results are as follows:EVA can better explain the performance of electronic information enterprises than traditional indexes, and thus can be used to evaluate the performance of electroni information enterprises;a financial performance evaluation system based on EVA was established, related indexeswere selected to evaluate the investment returns, operating efficiency, cash acquisition anddevelopment capacity of electronic information enterprises; a non-financial performanceevaluation system was established to evaluate human capital, innovation, customer andmarket of electronic information enterprises; the performance evaluation system was appliedto ZTE, corp, and after evaluation, this paper proposed four suggestions including confiningthe resources to the core and superior market, improving the production and value realizingability related to innovation, improving the core competitiveness and implementing EVAmanagement.