EVA Performance Evaluation?Non-malicious R&D Expense Manipulation And Innovation Efficiency

The "Interim Measures for Assessment of Business Performance of Centr al Enterprises Leading Personnel" implemented in 2010 introduced EVA for t he first time to evaluate the performance of managers in order to bring mana gers' personal utility function into line with the utility function of shareholder s and reduce Agency costs.EVA assessment is not only a kind of assessment method,but also a kind of incentive method,because of its scoring principl e,R&D expenses as an addition,it can play an incentive to executives to increase R&D costs input role.The literature has proved that EVA assessm ent does promote the R&D cost of central SOEs.However,there are few studies on whether the EVA assessment results in the manipulation of central SOE SOEs for R&D costs and the impact of such behavior on the innov ation efficiency of central state-owned enterprises.In this paper,the followin g issues were studied:Using the nature event of the implement EVA assessment in 2010,throu gh the double difference method to test whether the EVA assessment mechani sm for the central state-owned enterprises executives R&D costs and its im pact on innovation efficiency.The results show that the non-expected R&D expenses of the central state-owned enterprises are significantly improved aft er the implementation of the EVA assessment,and there is R&D cost mani pulation compared with the private enterprises which are not affected by the EVA assessment.At the same time,the use of the logarithmic random panel model Cost-effective central state-owned enterprises are more efficient in inno vation than central state-owned enterprises that are not manipulated.Further Explore the role of R&D cost in the relation of EVA assessment and value of Central State-owned Enterprises,founding that EVA assessment is to incr ease investment in R&D costs and then improve the value of central state-owned enterprisesThe first part of this article introduces the background and research sign ificance of the EVA assessment and the R&D cost of the state-owned enter prises;the second part is the domestic and foreign literature on EVA assessm ent and R&D costs;the third part introduces the theory;the fourth part is Research hypothesis and model establishment;the fifth part of the empirical analysis,validation of the research hypothesis,the results and analysis of th e reasons;the sixth part is to test the robustness of the experimental results;the seventh part is for further study.The eighth part is the conclusion and opinion.The contributions of this dissertation are listed as follows:(1)There is no literature on whether the implementation of EVA assessment can make em pirical research on the manipulation of R&D costs by central SOE executi ves.The research in this paper will fill the gap in this aspect.(2)(3)Expan ding the mechanism of EVA's impact on enterprise value,and the results of t his paper enrich this aspect.(3)The central state-owned enterprises with R&D cost manipulation behavior study the impact of this behavior on innovat ion efficiency,and enrich the related research on incentive mechanism and en terprise innovation..