The Impact of EVA Assessment on State-owned Enterprises’ Ability of Innovation

DOI

10.2991/iaw-sc.2013.146How to use a DOI?

Keywords

EVA assessment; R&D investment; Innovative ability;

Abstract

SASAC (State-owned Assets Supervision and Administration Commission of the State Council) started to use EVA (Enterprise Value Added) assessment as a performance measure on central enterprises in 2010, to guide the way how state-owned enterprises develop, to improve the efficiency of state-owned economy, and to fundamentally improve the ability of innovation. From the perspective of innovation ability, this article has made use of annualized 3-year EVA framework, to study how R&D (Research & Development) investment by holding companies of central enterprises has affected the EVA performance from 2007 to 2009; furthermore, to analyze the impact of EVA assessment term on innovation ability. Studies have shown that: EVA assessment and R&D investment are negatively correlated within a given fiscal year thus annual EVA assessment does not encourage enterprise to invest more in R&D and improve its innovation ability; nevertheless EVA assessment and R&D investment are positively correlated within any given three fiscal years, thus three year EVA assessment can help improve enterprise innovation ability. Based on the result, we have proposed policy recommendations as far as EVA assessment.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaoling Yuan
AU  - Wei Weng
AU  - Zhengda Li
PY  - 2013/10
DA  - 2013/10
TI  - The Impact of EVA Assessment on State-owned Enterprises’ Ability of Innovation
BT  - Proceedings of the 2013 International Academic Workshop on Social Science
PB  - Atlantis Press
SP  - 661
EP  - 666
SN  - 1951-6851
UR  - https://doi.org/10.2991/iaw-sc.2013.146
DO  - 10.2991/iaw-sc.2013.146
ID  - Yuan2013/10
ER  -