Research On The Relationship Between EVA And Effective Internal Control

Rely on the abundant capital,advanced technology and sheer scale,the State-owned Key Enterprises play an important role in national economy,great significance in promoting national economic development and social progress and improving socialist spiritual civilization construction.SASAC has never stopped the assessment about operating performance of the State-owned Key Enterprises:initially focused on the traditional indicators--Rate of Return on Common Stockholders' Equity and Total Profit by 2003 to the assessment of EVA after 2010.Assessment of EVA is going to become more and more difficult because the increasing proportion of EVA.The EVA has become an important index of State-owned Enterprises in the assessment about operating performance.The assessment results show that the CNPC can always at the top of the list due to a higher level of profitability and great value creation capability.The COSCO at the bottom of the list resulting in continuing losses and poor value creation capability.In the advantage of resources,the State-owned Key Enterprises should have greater performance in value creation.However,the results of the overall assessment is not satisfactory.Continuing losses,"Graft and Corrupt scandal" of the former CNPC's chairman,the explosion accidents led to contamination of Sinopec and so on.The accident made State property and people's life have suffered huge losses.In view of this,we have to think about if there a way not only can improve the Economic Value Added and profit,but also can assessment the effectiveness of internal management control and internal accounting controls.Scientific and effective of EVA has issued again by the SASAC in a comment(2014).The comment also emphasized the importance of establish an effective internal control system.This article analyzes the relationship between EVA and Effective internal control under the background.Meaning to find out the relationship between EVA and Effective internal control,looking to improve the EVA and internal control level in positive way.And rethinking the status of EVA and internal control in the State-owned Key Enterprises.The purpose is to make the enterprise value maximization.Based on the State-owned Key Enterprises internal control effectiveness analyses the problems existing in the assessment of EVA,and using the principal-agent theory,theory of value management,maximize shareholder rights theory and the theory of performance evaluation are proposed for theoretical basis for the EVA and the effect of internal control effectiveness relationship model.On this basis,this paper taking an example of 158 samples of the State-owned Key Enterprises,using descriptive statistical analysis and correlation analysis,to a degree as the standard of the effective implementation of the internal control on the sample divided into different grades,deeply analyzes the overall sample and grading sample a detailed in-depth comparative analysis,to verify the theoretical assumptions proposed in this paper.Finally,in the sample company at all levels based on the results of analysis,combined with the theoretical part of the research content,the author put forward to improve the EVA and the internal control of the effective implementation of the related countermeasures and Suggestions.Innovation point of this article:On the basis of the State-owned Key Enterprises EVA of the existing research results and innovation combined with internal control effectiveness,through a lot of literature review and solid theoretical analysis,established on the basis of the internal control index of the state on the effectiveness of internal control evaluation model.Research model of this paper is different from the SASAC assets supervision and administration of state EVA of the established rating,is based on the ratings to innovate and improve the after.Through the design of the model in this paper,further study on the correlation presented in state-owned enterprises performance evaluation.