Research On Performance Evaluation Of Shagang Group Based On EVA

The iron and steel industry plays an important role in the development of China’s national economy and plays an increasingly important role in promoting the development of the world’s iron and steel industry.China is a big country of steel production and consumption,machinery,transportation,construction,national defense and other basic industries are inseparable from all kinds of steel products.Today,decades after the founding of the People’s Republic of China,China’s economy is growing rapidly,and the output of the steel industry has increased significantly.In recent years,affected by the economic growth and market development prospects,the steel industry is facing heavy pressure.As an industrialized and modern country,China’s iron and steel industry must maintain a global vision and keen sense of market,adhere to the concept of sustainable development,which requires us to build a reasonable and efficient performance evaluation system.Shagang Group is one of the representative private iron and steel enterprises in China.Its steel production capacity ranks among the top 500 in the world for 11 consecutive years.The current performance evaluation system of Shagang Group mainly takes net profit as the core index,supplemented by diversified personal performance evaluation methods,neglects the opportunity cost of shareholders’ capital investment,and the evaluation results are limited to historical financial status and operating performance,which is easy to cause short-sighted behavior of enterprise managers.It is an urgent problem to study whether the more advantageous EVA index can be used to evaluate the performance of Shagang Group,and how to build the EVA performance evaluation system in Shagang Group,so as to improve the efficiency of performance evaluation.This paper is mainly divided into six parts.Firstly,on the basis of EVA performance evaluation system,this paper expounds the research background and significance,and finds that EVA is not widely used in private steel industry.According to the current market environment and the situation of Shagang Group,it is necessary to introduce EVA evaluation index into shagang group;By using the method of literature research,this paper summarizes the domestic and foreign literature on EVA and EVA performance evaluation,and finds that the research on EVA abroad is more sufficient,while the research in China is also constantly full and perfect;This paper points out the research methods and contents of this paper,as well as the related concepts and basic theories involved;This paper introduces the basic situation of the company and the current situation of the industry,and finds that there are some problems in the current performance evaluation method of Shagang Group;Through the calculation of EVA value of Shagang Group from 2015 to 2019 and the comparison between EVA index and traditional financial index,this paper draws relevant conclusions,and puts forward five constructive suggestions for improving the performance evaluation system of Shagang Group: first,establish the core concept of EVA performance evaluation;second,establish the core concept of EVA performance evaluation;third,improve the performance evaluation system of Shagang Group;Second,strengthen the combination of financial indicators and non-financial indicators;The third is to establish special evaluation organization and strengthen incentive assessment;Fourth,promote technological innovation and industrial structure adjustment and upgrading;Fifth,cultivate EVA corporate culture;Finally,the research conclusion is drawn,and the shortcomings of this paper are summarized,as well as the prospect of future related research.The research of Shagang Group in this paper can not only provide reference for other enterprises in China’s steel industry to improve EVA performance evaluation system,but also promote the stable development of China’s basic industries and improve the ability of steel industry to serve the economy and society.