Zhejiang State Owned Business Performance Evaluation Study Based On The Economic Value Added

Economic value added is a new management thinking and performance evaluation index and it has been widely accepted by public.It makes up the traditional performance evaluation index inadequacy.It reflects enterprises business performance reasonably with the consideration of debt cost.In 2010,State Asset Regulatory Commission(SASAC)planed to introduce an overall economic value added evaluation method for state owned corporate and its efficiency has been approved.Zhejiang province as an economic strong province,the local state owned corporate plays a critical role in economy.How to establish a scientific efficient local state owned performance evaluation system for the purpose of manage state capital and maintain owners’ rights as well as respect autonomy in management and property right of legal person.It is significant to maintain market subject of corporate and legal entity are entitled to reserve rights.This essay takes Zhejiang state owned enterprises as examples,it explores the performance evaluation efficiency of Zhejiang state owned enterprises,compared with traditional performance evaluation mechanism,which sumarized the performance evaluation,the connotation of economic added values and influence of performance evaluation,adopting central enterprises implemented economic added values business performance evaluation practices.Two conclusions can be summarized as,fisrstly,a remarkable positive correlations between economic added value and enterprises values.Secondly,economic added value has a persuasive role in interpreting enterprises’ performance rather than the traditional evaluation index.Last but not the least,this essay concludes the suggestions on Zhejiang state owned enterprises implementation economic added value business performance evaluation.This essay initially establishes the Zhejiang state owned enterprises implementation economic added value business performance evaluation mechanism,and then reviews its efficiency.It supplement the theoretical exploration on local state owned enterprises which adopts economic added value,but also reveals the links between management practices and local state enterprises performance evaluations.