The Path to Creating Enterprise Value -- Practical Operations of Economic Value Added Performance Assessment

Author: Performance Appraisal Bureau, State-owned Assets Supervision and Administration Commission
Publisher:
Publish Date: 2005-06-01
Features: The book is divided into six chapters. Chapter 1 introduces the Economic Value Added (EVA) management system. It begins by defining the criteria for identifying excellent enterprises, leading to the basic concept of EVA. Then, it addresses the current state of state-owned asset management in China and proposes solutions to existing problems. The chapter also focuses on the management philosophy advocated by EVA and the "4M" management system, as well as the relationship between EVA and other performance appraisal systems. Chapter 2 covers the calculation methods of EVA, emphasizing the calculation methods and adjustments of indicators involved in the relevant formulas. Chapters 3 and 4 analyze domestic and international case studies of EVA implementation. They propose key elements for successful implementation of appraisal and management, while comparing the current status of EVA application in domestic enterprises to identify major challenges and solutions in promoting EVA in China. Chapter 5 discusses the implementation plan for the EVA performance appraisal system and core issues during implementation. It offers recommendations for advancing and implementing EVA. Chapter 6 introduces how to sustainably enhance a company's long-term value creation capability. Centered on EVA, it comprehensively elaborates on the application of EVA as a value management system in improving long-term value creation and strengthening core competitiveness, covering aspects such as corporate strategic management, value driver analysis, benchmark management, establishing a robust corporate risk management system, and effective compensation incentive schemes. The book's major feature is its provision of a relatively complete solution tailored to China's national conditions, demonstrating strong practicality and operability.