A Comparative Study of EVA and Traditional Financial Indicators in Evaluating the Performance of Large Multinational Enterprises
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As globalization enters a new era, large multinational companies have entered a period of high-quality development. Focusing on adhering to the value-oriented performance evaluation idea, people need to find a better way to meet the needs of investors, managers, employees, and other stakeholders to meet the needs of enterprise performance evaluation. Based on the dynamic evolution of economic value added (EVA), this paper constructs a theoretical analysis framework of EVA and traditional financial indicators to evaluate the performance of large multinational enterprises according to the internal logic of financial and non-financial indicators. It explains the high-quality development mechanism of enterprises jointly generated by the performance evaluation mechanism and performance incentive mechanism involving EVA and traditional financial indicators. Moreover, it explores the possibility of moving towards high-quality development goals from the perspective of international comparison and practice of the performance of large multinational enterprises. The purpose of EVA and traditional financial indicators to evaluate the performance of large multinational enterprises is to provide stakeholders with an enterprise value that meets the expected standards and continuously improve enterprise quality and stakeholder satisfaction. Therefore, the high-quality development of large multinational enterprises is achieved by strengthening the enterprise decision-making control based on the EVA quality internal cycle, constructing the interaction and coordination mechanism between EVA and the quality perception of traditional financial indicators, and establishing the evaluation system of EVA and traditional financial indicators, to promote global economic growth and truly meet the needs of stakeholders.
Economic value added; Traditional financial indicators; Large multinational enterprises; High-quality development