Research On The Performance Evaluation Of Electric Power Companies Based On EVA

With the growing volume of our economy,the current development is gradually stabilizing,but in the period of entering a new stage of development,it also faces new opportunities and challenges at the same time.China’s economic situation is largely stable,the economic structure has been steadily improving,the gross domestic product has also increased year by year,and has now exceeded the trillion mark.Along with this series of development and reform,the demand for electricity in various industries in China has been increasing accordingly,and China,as the second largest economy in the world,is getting more and more attention in the global perspective.But the domestic enterprise performance evaluation system has not been a great change,especially China’s state-owned enterprises,many still follow the past performance evaluation system.In enterprises,the reliability of enterprise performance evaluation results is closely related to the achievement of strategic goals by enterprise managers,however,the current performance evaluation methods of China’s electric power enterprises are still mainly focused on maximizing profits,which will lead to a lack of consideration at the shareholder level,so the situation of achieving the goal of maximizing enterprise value is not very well done compared to other countries.In this regard,referring to the advanced performance evaluation methods in foreign countries,I found that it is necessary to consider introducing EVA into China’s enterprise performance evaluation system.This can,to a certain extent,provide a more comprehensive evaluation of business activities.In this paper,we firstly review the domestic and foreign studies,and then briefly explain the current situation of China’s electric power enterprises,and analyze the shortcomings in the performance evaluation of major electric power enterprises,and then explain the necessity of introducing EVA indicators.Then,taking the specific operation of L Hydro as an example,the basic overview and current performance of L Hydro are calculated and analyzed,and the problems existing in the current performance of L Hydro are presented.At the same time,the financial data from 2015-2019 were selected,and the weights of each evaluation index were determined through hierarchical analysis,and EVA index was introduced into L Hydro and given weights.Then,a new performance evaluation system was constructed and applied to the company,and the specific scores were obtained and the results were analyzed.Finally,based on the analysis of the comprehensive results of the performance evaluation of L Hydro,we propose feasible suggestions for improving the performance evaluation system and the implementation of EVA in L Hydro.Through the above study,it can be seen that the performance evaluation study introducing EVA can overcome some defects in traditional performance to some extent,while reflecting the performance level of the company more realistically,and finally improving the business operation continuously according to the more realistic performance level,and also providing some reference for other similar companies.