Abstract
China’s capital economy developed relatively late. In 2010, The State-owned Assets Supervision and Administration Commission (SASAC) officially stipulated that state-owned enterprises (SOES) should adopt EVA evaluation index. First introduced the traditional financial index system and measure of EVA index, and then by state-owned joint-stock enterprise group as an example, through the study of the application of EVA index in Gree, comparing to traditional financial index, analysis of the advantages of EVA index in performance evaluation of state-owned enterprises in China, and on the basis of the application of EVA index in our country state-owned enterprise puts forward some Suggestions to improve and perfect.
Highlights
1.1 Research Background EVA (Economic Value Added) refers to Economic Added
The organization target of the maximization of shareholders’ interests, traditional enterprise performance evaluation method has not meet the needs of times development, use the EVA method can better improve the enterprise performance evaluation of enterprise management and ownership division has become increasingly apparent agency costs under the present situation, and motivate top managers to improve asset utilization and maximize the enterprise value as much as possible
We need to improve the EVA performance evaluation index to make the EVA index play a greater and better role in the evaluation of business performance
Summary
1.1 Research Background EVA (Economic Value Added) refers to Economic Added. EVA can be used to evaluate the specific business performance of an enterprise, and serve as an incentive mechanism to motivate employees. 2.1.1 Research on EVA Theory, Relevant Accounting Adjustment, Advantages and Limitations In the 1980s, Stern Stewart management consulting company of The United States put forward the concept of EVA index, which can be used to evaluate the business performance level of enterprises and reflect the ability of enterprises to create wealth. EVA Method Introduction 4.1 EVA Concept of EVA is an index formally put forward by Stern Stewart consulting company in 1982 It indicates that the net value of adjusted after tax profit minus all capital costs is the newly created value of the enterprise. The turnover rate of the accounts receivable in enterprise and the turnover rate of the total assets have declined significantly. 5.2 Traditional Financial Analysis of Gree This paper will analyze the development of Gree Group in 2014-2018 from the perspective of traditional performance evaluation, such as basic indicators, profitability indicators, operating capacity indicators, solvency indicators and growth capacity indicators
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