A Study of EVA (Economic Value Added) in Measuring the Operating Performance of Taiwan''s Commercial Banks

• Main Authors: Cheng-Wang Lin, 林正旺
• Other Authors: Yi-Chuan Lu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/39534298532895372092

碩士 === 元智大學 === 資訊管理學系 === 90 === After financial reformation, the more competitive business environment makes banking transfers its management prospective from maintaining the stable financial system in earlier times to pursuing shareholder value maximization. Having shareholder value maximization as the business goal enables capital market to evaluate and monitor the management team of a bank; meanwhile, it also solves the agency problems. In this way, managers and shareholders will both accept to regard increasing corporate value as the most significant goal, and such an agreement can enhance the competitive capacity of a company and furthermore attract more investors’ attention. Thus, this study is going to apply the heated value based management model, EVA (Economic Value Added), to measure the operating performance of Taiwan’s commercial banks, and will compare EVA with traditional accounting performance indicator to conclude which performance indicator is more cable of representing the management performance of the banks. The concluded performance indicator is supposed to be helpful reference for management team to make strategies and decisions or for the people to choosing stocks. In addition, whether past financial information can effectively decide or predict the current value of a bank is also included in my discussions. This study collects 35 listed or over the counter banks as samples, and the target research period is from 1997 to 2000. Results of my experiment as follows: 1.The current accounting performance indicator is more suitable than EVA for predicting the current MVA. 2.When more periods of information are taken into consideration, the current MVA will be more predictable and accurate.