Empirical Research On The Relationship Between EVA Assessment And Corporate Innovation In The Perspective Of Life Cycle

SASAC promulgated the "Central enterprises in charge of operating performance assessment interim measures"(hereinafter referred to as "assessment measures")in 2010,introducing EVA as the performance assessment indicators of state-owned enterprises'executives and was firstly implemented in the Central enterprise.The assessment method is to change the rate of return by economic value added(EVA)in the annual evaluation index of the state-owned enterprise executives starting from 2003.EVA has been implemented for several years,and the academic research on its economic consequences mainly concentrates on the influence on enterprise value and investment efficiency.And there is little literature to discuss the impact of EVA examination on enterprise innovation ability.The innovation-driven development strategy is very important for the survival and development of the country and enterprise.The innovation ability of state-owned enterprises plays an important role in demonstrating and promoting the construction of national innovation system.As China's innovative ability in the world ranked 17th,there is still a lot space for improvement.One of the main reasons for the low level of innovation ability is the agency problem between the management and the shareholders.As is one of large investments,which has long payback period and high risk,the innovation activity makes the management have a negative attitude towards it.When the EVA index is calculated,the research and development expense should be added back to the net profit after tax,which reduces the negative influence of the research and development expenditure on the management period assessment,and effectively reduces the agency problem between the management and the shareholders.Then,the implementation of EVA assessment can stimulate the enterprise management to carry out research and development input and obtain innovative output?Based on the above explanation,this paper discusses the impact of EVA examination on the innovation ability of enterprises from the theoretical deduction and empirical research.Firstly,this paper probes into the characteristics of innovation and the influential factors of innovation in theory.After analyzing the EVA theory and its index calculation,the author thinks that the adjustment of the cost of research and development reduces the management's"worries",while considering the cost of the creditor's capital and the equity capital,the management and the shareholders'interests are coordinated,Easing agent issues.It is through this path that the implementation of EVA assessment can enhance the innovative ability of enterprises.In addition,different life cycle enterprises have different degrees of agency problems and phased tasks.Thus,the life cycle of EVA assessment and enterprise innovation ability may have a moderating effect.Based on this,the paper puts forward the hypothesis.Then,this paper chooses the 2007-2012 Shanghai and Shenzhen A-share motherboards listed central enterprises and private enterprises as a research sample to verify hypothesis,using the double difference model to test the impact of EVA Assessment on enterprise innovation.In the regression equation,taking the total amount of enterprise patent application as the agent variable of innovation ability,using the enterprise nature and the two virtual variables of the year to carry on the double difference,the private enterprise as "blank control group“is to avoid the time trend effect(the trend of the enterprise's innovation ability appearing yearly rise)to disturb the experimental result.Then,the Dickinson(2011)Cash flow symbol group is used to classify the enterprise life cycle,and the group regression is performed to verify the moderating effect of the lifecycle.The results show that:first,the SASAC to the central enterprise responsible for the implementation of EVA assessment can significantly enhance the innovative ability of enterprises,stimulate enterprise research and development investment;second,compared with the enterprises in the recession,EVA evaluation can promote the innovation ability of enterprises in the growth period and maturity stage.Finally,according to the results of the study,we get the conclusion and make three suggestions.First,we should continue to further promote the implementation of EVA Assessment and encourage private enterprises to adopt EVA as a Management performance evaluation tool.Second,for different life cycle enterprises to implement a certain difference in the assessment strategy,the recession of enterprises can encourage the purchase or introduction of the way to improve innovation.Third,the implementation of assessment incentives,the necessary supervision is indispensable.To promote the EVA index to the private enterprises,the performance of the earlier part of the deferred,according to the follow-up to the innovation results of the distribution of the proceeds can effectively monitor the management of the blind and meaningless innovation activities.Compared with the existing literatures,the research contribution of this thesis is mainly embodied in the following two aspects:first,this paper will be able to identify the impact of assessment policy on enterprise behavior more comprehensively and accurately and expand the research perspective of enterprise innovation.There is no concern about the impact of life cycle on the implementation of EVA assessment policy,this article will introduce the enterprise life cycle into EVA Assessment and enterprise Innovation Research,which is helpful to understand the function boundary of policy implementation effect more deeply.