Research On The Improvement Of Financial Performance Evaluation System In Td Company Based On EVA

EVA has been put forward for many years, and those performance evaluation methods based on EVA are already applied in practice in foreign countries. But most of the enterprises in our country still use the traditional performance evaluation methods, which are based on the current accounting standards of financial statements. The objectivity of the traditional performance evaluation system can not be truly trust because accounting profits can be manipulated. Such performance evaluation methods can not provide enough information that is needed for modern enterprises to participate in market competition.The financial performance evaluation based on EVA is established on the basis of economic profit. This kind of evaluation can eliminate the influence of artificial estimation and artificial manipulation, because it takes in account NOPAT and total cost. So it can make up for the congenitally deficient of traditional performance evaluation index, and it is able to measure the current operating results of enterprises more accurately and judge the value the value creation of the current enterprise.This paper,based on the theory of EVA,integrates EVA into TD’s financial performance evaluation and builds a new financial performance evaluation system based on EVA. In this paper, we verify the superiority and rationality of the newly constructed financial performance evaluation system based on EVA by comparing the financial performance evaluation of the traditional financial performance evaluation system and new system. In the end, we put forward some safeguard measures for the smooth implementation of TD company’s financial performance evaluation system based on EVA.The significance of this paper is that we build a new financial performance evaluation system for TD company, and TD company can search path to reduce the cost and increase corporate profits through this system. On the other hand, TD company has regional representation, this research can bring some reference to similar enterprises.