The Research On Improvement Of LS Group Performance Evaluation Based On Economic Value Added

As a necessities to the national economy and the people’s livelihood,Salt has been under the monopoly franchise system for a long time.With the growing voice of the salt industry reform,salt companies are facing more and more market competition.Performance evaluation,as an important part of enterprise strategic management,is closely related to the survival and development of enterprises,and affects the formation and maintenance of the core competitiveness of enterprises.At the end of 2009,the SASAC promulgated the "Head of central enterprises performance evaluation methods",the economic value added as the main assessment indicators,the provincial SASAC also began to use EVA to assess state-owned enterprises performance.As a new financial index,EVA uses the difference between net operating profit after tax and weighted average cost of capital to evaluate the real performance of the enterprise,to a certain extent,can overcome the limitations of traditional financial indicators.However,due to China’s EVA application is still in the trial stage,over the extensive evaluation of state-owned enterprises EVA performance,there are many problems.This paper chooses LS Group as the research object.In the context of excess capacity,the abolition of salt franchise to make the market competition intensified,LS Group is still changing slowly,ignoring EVA performance evaluation and internal management.In this paper,we used the traditional financial index and EVA to evaluate the performance of the LS group,through the comparative analysis,proved that EVA has more advantages in the LS group,also found that evaluation criteria set perfunctory,EVA calculation rough,indicator set a mere formality,EVA performance evaluation function failure.Through further research,we found that the root of the above problems is that the singleness of EVA Evaluation Index,the decoupling of evaluation result and incentive mechanism,the insufficient understanding of EVA evaluation superiority and the inconsistency of the target function between the principal and agent.Finally,based on the LS Group EVA performance evaluation and its root causes,this paper puts forward the concrete optimization measures of EVA evaluation of the group in combination with the advanced experience of EVA evaluation and performance evaluation.Finally,according to the LS group EVA performance evaluation problems and their roots,combined with the EVA assessment requirements and the advanced experience,this paper proposed the specific optimization measures of group EVA performance evaluation.Specifically including the development of a clear EVA budget standard,which includes Eva Benchmark and Eva expected increment,at the same time,Eva evaluation standard should refer to the industry standard,reconstruct the EVA appraisal standard development process;add EVA calculation details,combine the actual situation of group and Sasac’s expectation of EVA Evaluation,supplement the accounting adjustment project in EVA calculation process,try to calculate the capital cost rate;improve the EVA evaluation index,based on the perspective of EVA to design the basic financial index with EVA as the core and EVA-oriented auxiliary financial index,and from the customer,the internal process,learning and growth three dimensions design the non-financial indicators related to the future EVA;strengthen the use of EVA evaluation results,establishing the EVA evaluation tracking and feedback mechanism,building the incentive mechanism linked with EVA evaluation results,thus constructing the performance appraisal system based on EVA.This study is of great significance to optimize LS Group EVA performance evaluation and improve its performance management level.At the same time,it can provide reference about EVA performance evaluation for other salt enterprises,strengthen the supervision of state-owned capital,improve the efficiency of state-owned capital,optimize the allocation of social resources.