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  • The five-year protection period after China's banking industry entering the world has come to an end. With China’s financial market integrating into international financial market in 2006, uncertain risks have increased. Also, the external environment that China's banking industry relied on has become more complex. Facing the current situation, China's banking industry highly needs a set of scientific and comprehensive performance evaluation methods to increase its efficiency, sustainability and competency. Recently, the concept that the ultimate goal of public companies is maximizing shareholder benefit has been widely appreciated. However, traditional performance evaluation index of China’s commercial banks hasn’t take equity capital into consideration and can be easily controlled and modified. These disadvantages can lead to information distortion, reduce reliability and validity of the evaluation and induce investors and decision makers to make wrong judgments. So, it is very necessary to introduce Economic Value Added (EVA) evaluation system to China’s banking industry since EVA index can overcome those disadvantages. Although EVA is a relatively new concept in China’s banking industry, it is gradually valued and applied by many banks. For example, ICBC (Industrial and Commercial Bank of China) and CBC (Construction Bank China) introduced EVA into their evaluation system in 2003 and 2006 respectively. This article will evaluate the performance, reliability and influential factors of EVA in China’s commercial banks based on annual reports (2006-2011) of 12 public listed banks. EVA model is also amended considering the particularity of China’s banking industry to measure performance. By using CAMEL analytic method and designing regression model, some relevant suggestions are formed including implementing comprehensive capital management, improving asset quality and adjusting earning structure.
  • The five-year protection period after China's banking industry entering the world has come to an end. With China’s financial market integrating into international financial market in 2006, uncertain risks have increased. Also, the external environment that China's banking industry relied on has become more complex. Facing the current situation, China's banking industry highly needs a set of scientific and comprehensive performance evaluation methods to increase its efficiency, sustainability and competency. Recently, the concept that the ultimate goal of public companies is maximizing shareholder benefit has been widely appreciated. However, traditional performance evaluation index of China’s commercial banks hasn’t take equity capital into consideration and can be easily controlled and modified. These disadvantages can lead to information distortion, reduce reliability and validity of the evaluation and induce investors and decision makers to make wrong judgments. So, it is very necessary to introduce Economic Value Added (EVA) evaluation system to China’s banking industry since EVA index can overcome those disadvantages. Although EVA is a relatively new concept in China’s banking industry, it is gradually valued and applied by many banks. For example, ICBC (Industrial and Commercial Bank of China) and CBC (Construction Bank China) introduced EVA into their evaluation system in 2003 and 2006 respectively. This article will evaluate the performance, reliability and influential factors of EVA in China’s commercial banks based on annual reports (2006-2011) of 12 public listed banks. EVA model is also amended considering the particularity of China’s banking industry to measure performance. By using CAMEL analytic method and designing regression model, some relevant suggestions are formed including implementing comprehensive capital management, improving asset quality and adjusting earning structure. (en)
Title
  • Performance Evaluation of China´s Listed Banks Based on Economic Value Added
  • Performance Evaluation of China´s Listed Banks Based on Economic Value Added (en)
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  • Performance Evaluation of China´s Listed Banks Based on Economic Value Added
  • Performance Evaluation of China´s Listed Banks Based on Economic Value Added (en)
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  • RIV/70883521:28120/13:43870828!RIV14-MSM-28120___
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  • Zheng, Xiaosong
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  • 95748
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  • RIV/70883521:28120/13:43870828
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  • EVA, performance evaluation, public banks, influential factors (en)
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  • [C3663B65ECD9]
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  • 9th Annual International Bata Conference for Ph.D. Students and Young Researchers
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  • Zheng, Xiaosong
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number of pages
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  • Fakulta managementu a ekonomiky, UTB ve Zlíně
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  • 978-80-7454-248-0
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  • 28120
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