Research On Performance Evaluation System Of G Company Based On Combination Of EVA And MVA

Since the 20 th century,with the development of the market,the real estate industry has become the pillar industry of China’s market.The slowdown of economic growth in recent years has not affected it.The new industrial chain with the real estate industry as the core has an important impact on China’s financial market,stock market and people’s livelihood.Therefore,it is of great significance to evaluate the performance of real estate enterprises.At present,most enterprises in China still use traditional financial indicators to evaluate enterprise performance.Although these indicators meet the requirements of performance evaluation to a certain extent,they are not conducive to the long-term development of enterprises.In 2010,SASAC began to promote EVA index assessment,which promoted its application and research in China.This also makes many private enterprises begin to pay attention to EVA and try to introduce it.At the same time,for listed companies,we should also pay attention to the MVA index,which builds a bridge between market feedback and the company’s operating results,so that the enterprise management can more clearly understand whether the market is optimistic about the company and make more cautious decisions.G company has been established for 70 years and is a leading enterprise in China’s real estate industry.Because of its benchmarking status,every move is the object of imitation in the same industry.The construction of performance evaluation system also has certain guiding significance for other enterprises in the industry,and will also affect the healthy development of the whole industry.The current performance evaluation method of G company mainly sets up three sets of performance evaluation processes for the group,marketing company and employees.However,all processes are financial core,and traditional financial indicators are still used for evaluation,which is profit oriented.On this basis,this paper puts forward a performance appraisal system with EVA and MVA as the core,which changes the original profit oriented appraisal into value-added oriented appraisal.In order to reflect the performance level of G company more objectively and truly,assist the management of G company to make every decision more carefully and improve the core competitiveness of the enterprise.Firstly,this paper summarizes the research process of EVA and MVA,refers to the research results of scholars at home and abroad,and summarizes its theoretical basis.At the same time,it analyzes the general situation of G company,the current situation of performance evaluation price,and the existing defects.EVA and MVA are taken as the core indicators of performance appraisal,and net profit and operating income are selected to supplement the evaluation results of the core indicators,retaining the original non-financial indicators.According to the results of the questionnaire,the weight of each index is calculated,and a new performance evaluation system is established.The new evaluation system is used to re evaluate the performance of G company in recent six years,and the results are analyzed.At the same time,it also puts forward the necessary safeguard measures for the smooth implementation of the new system.It improves the management effectiveness of G company and enhances the core competitiveness of G company.