The Case Study Of EVA Performance Evaluation On BTG HOTELS

With the continuous development of China's economy and the gradual rise of national living standards,the tourism industry has gradually developed.But with the development of the industry,problems will arise one after another.The origin of tourism is based on a certain economic basis,so economy is the core and main purpose of tourism.However,in the pursuit of economy,enterprises can easily become short-sighted and blind.Because of the capital-intensive characteristics of the tourism industry,it is easy for the management to over-finance because of the pursuit of profits.Among the common internal appraisal mechanisms nowadays,traditional ones such as profit performance appraisal system are the most common.Most enterprises hardly include the cost of equity capital into the enterprise performance appraisal system.That is to say,managers and stakeholders of enterprises cannot be seen through performance appraisal.The real and objective business performance of enterprises cannot make the corresponding decisions accordingly.Through the analysis of performance evaluation theory and the application of EVA performance evaluation method,this paper summarizes the relevant research results at home and abroad.For enterprises,management ability and competitive ability are the most important two abilities.Accurate and effective evaluation of the business performance of enterprises can make enterprises more clearly discover past problems,thus effectively improving these two abilities.After that,the differences between different performance evaluation methods are compared.Enterprise performance evaluation system,which focuses on accounting profit,only pays attention to the value of profit itself,but ignores the impact of many factors such as cost of equity on enterprise performance.It does not accurately reflect the real performance of the company,nor does it have strong sustainable development ability.Economic Value Added(EVA)is the real measure of economic value,and take into account the cost of capital,return it to lenders and shareholders of data.The biggest difference between EVA performance evaluation method and traditional evaluation method is that when calculating,he introduces the consideration of equity capital cost,so that he can more truly reflect the value created by the enterprise for shareholders and the value-added ability of the enterprise itself,which is the data that shareholders most want to see.This paper studies the application of EVA performance evaluation system on BTG HOTELS by case analysis and comparative analysis.On this basis,it analyses the positive impact it brings and the areas to be improved.EVA performance evaluation mechanism can make enterprises more clearly see the reasons for their own value-added or depreciation,and also enable enterprises to see from what aspects should enhance their core competitiveness,so that enterprises can achieve real value-added and sustainable development.BTG HOTELS establishes optimal incentive plan based on EVA,optimizes enterprise capital structure,improves capital operation efficiency,concentrates capital to high-quality subsidiaries,and abandons equity investment with poor performance,so as to improve enterprise value.Finally,this paper will explore the characteristics of EVA performance evaluation and its applicability to hotel enterprises,so as to provide other hotel enterprises with a reference case.