Analyzing the implementation outcomes of economic value added (eva™) at china construction bank (ccb)

Autores

  • Lina Song School of Management, Universiti Sains Malaysia, Penang, Malaysia
  • Amirul Shah Md Shahbudin School of Management, Universiti Sains Malaysia, Penang, Malaysia.

DOI:

https://doi.org/10.20397/2177-6652/2023.v23i4.2726

Palavras-chave:

Economic, Value Added, China Construction Bank

Resumo

In 2002, China Construction Bank (CCB) introduced the Economic Value Added (EVA™) indicator as a performance metric linked to value creation and salaries. This article examines the implementation outcomes of EVA™ in four municipal branches of the CCB Inner Mongolia provincial branch. Despite two decades of implementation, the EVA™ metric has faced significant hurdles within the CCB. In particular, a majority of the municipal branches and outlets within the CCB Inner Mongolia provincial branch have shown a preference for traditional financial indicators like deposit and loan growth over the EVA™ metric. This article seeks to analyze the reasons behind the implementation outcomes of EVA™ within CCB from technical, cultural, and political perspectives. The goal of this exploration is to deepen the understanding of the challenges encountered and to offer valuable insights for enhancing the implementation of EVA™ in not just the CCB but also other commercial banks in China.

Referências

Abdalla, A. M., & Carabias, J. M. (2022). From accounting to economics: The role of aggregate special items in gauging the state of the economy. The Accounting Review, 97(1), 1-27.

Abrahamson, E., & Fairchild, G. (1999). Management fashion: Lifecycles, triggers, and collective learning processes. Administrative science quarterly, 44(4), 708-740.

Ahmadyan, A., & Khansari, R. (2018). Application of Economic Value Added in the Banking Sector of Iran. Journal of Money and Economy, 13(3), 291-318. Copeland T., Koller, T., & Murrin, J. (1996). Valuation: measuring and managing the value of companies. Wiley frontiers in finance.

Drucker, P. (1995). The Information Executives Truly Need. Harvard Business Review, 54-62.

Ehrbar, A. (1998). EVA: The Real Key to Creating Wealth. New York: Wiley.

Eisenhardt, K. M. (1991). Better stories and better constructs: The case for rigor and comparative logic. Academy of Management review, 16(3), 620-627.

Elmadhoun, I. R., & Murtaja, M. H. (2022). Economic Value Added: Acritical Reading. International Journal for Research in Applied Science and Engineering Technology, 10, 1050-1058.

Fiordelisi, F., & Molyneux, P. (2004). Measuring Shareholder value in European banking. University of Wales, Bangor Business School, Working Papers.

Grant, J. L. (1996). Foundations of EVA for investment managers. The Journal of Portfolio Management, 23(1), 41-48.

Hammer, T., & Siegfried, P. (2022). Value-Based Controlling & International Accounting Economic Value Added (EVA)–An Overview. Accounting and Finance, (2), 96.

Hu, Y. (2006). EVA-centered Value Management of China Construction Bank (Master dissertation). SouthWestern University of Finance and Economics.

Huang, L. (2014). Research on the Performance Evaluation of Chinese Commercial Bank based on EVA (Master dissertation). Jilin University of Finance and Economics.

Jiang, C. (2009). The study on the Performance Assessment System of the Construction Bank based on EVA (Master dissertation). Hunan University.

Kaur, M., Singh, K., & Singh, D. (2019). Synergetic success factors of total quality management (TQM) and supply chain management (SCM): A literature review. International Journal of Quality & Reliability Management, 36(6), 842-863.

Lawrence, T. B., & Suddaby, R. (2006). 1.6 institutions and institutional work. The Sage handbook of organization studies, 215-254.

Li, H. H. (2019). Research on Performance Management of Commercial Banks Based on EVA Theory---A case study of a first level branch of a state-owned bank (Master dissertation). Shandong University.

Libo, N. (2022). Research on the Effectiveness of Mergers and Acquisitions of Listed Companies in Country of Asia: the State and Trends of Development. Магистерская диссертация (Doctoral dissertation, Полоцкий государственный университет имени Евфросинии Полоцкой).

Liu, S. X. (2017). Research on performance evaluation of BJ bank based on EVA (Master dissertation). China University of Geosciences.

Modell, S. (2022). Is institutional research on management accounting degenerating or progressing? A lakatosian analysis. Contemporary Accounting Research, 39(4), 2560-2595.

Moll, J., Burns, J. & Major, M. (2006), “Institutional theory”, in Hoque, Z. (Ed.), Methodological Issues in Accounting Research: Theories and Methods. Spiramus Press, London.

Nieuwoudt, R., & Hall, J. H. (2022). Impact of Firm-specific Attributes on the Shareholder Value Creation of Listed South African Companies. Global Business Review, 09721509221123198.

O’Byrne, S. F., & Rajgopal, S. (2022). Employee Value Added: A New Measure of Gain‐Sharing between Labor and Capital. Journal of Applied Corporate Finance, 34(2), 30-44.

Perkmann, M., & Spicer, A. (2008). How are management fashions institutionalized? The role of institutional work. Human relations, 61(6), 811-844.

Pompong, S. B. (2015). The Influence of Economic Value Added on Liability Management in Commercial Banks of Indonesia. Journal of Nursing and Health Science, 4(3), 9-17.

Rui, Y. Q. (2021). Research on performance management of commercial banks based on EVA evaluation system --Take Yunnan branch of China Construction Bank as an example (Master dissertation). Yunnan University of Finance and Economics.

Sabol, A., & Sverer, F. (2017). A review of the economic value-added literature and application. UTMS journal of economics, 8(1), 19-27.

Sakdiyah, K. (2022). Financial performance assessment analysis using economic value added (EVA) method. NUsantara Islamic Economic Journal, 1(1), 54-64.

Silvia, R., & Wangka, N. (2022). Economic Value Added and Market Value Added as A Measuring Tool for Financial Performance. International Journal of Social Science and Business, 6(1), 135-141.

Siripipatthanakul, S., Limna, P., Sitthipon, T., Jaipong, P., Siripipattanakul, S., & Sriboonruang, P. (2022). Total quality management for modern organisations in the digital era. Advance Knowledge for Executives, 1(1), 1-9.

Stewart, G. B. (1991). Quest for Value. New York, NY, Harper Business.

Stewart, G. B. (2009). EVA momentum: the one ratio that tells the whole story. Journal of applied corporate finance, 21(2), 74-86.

Thampy, A., & Baheti, R. (2012). Economic value added in banks and development financial institutions. IIM Bangalore Research Paper.

Tolbert, P. S., & Zucker, L.G. (1996). The institutionalization of institutional theory. In S. R. Clegg, C. Hard, & W. R. Nord (Eds.), Handbook of organization studies (pp. 175–190). Thousand Oaks, CA: SAGE.

Tripathi, P. M., Chotia, V., Solanki, U., Meena, R., & Khandelwal, V. (2022). Economic Value Added Research: Mapping Thematic Structure and Research Trends. Risks, 11(1), 9.

Walbert, L. (1995). The 1994 Stern Stewart Performance 1000. Journal of Applied Corporate Finance, 7(4), 105-110.

Wang, J. H. (2015). The Studies on Central Huijin Investment Ltd. Increase Holdings of Shares of ICBC (Master dissertation). Zhengzhou University.

Wei, W. J. (2012). Research on the Product Pricing Method of CCB---based on EVA. (Master dissertation). Lanzhou University.

Wu, L. F. (2011). Study on the Application of EVA in State-owned Commercial Banks-Based on the Case of Agricultural Bank of China (Master dissertation). SouthWestern University of Finance and Economics.

Zhao, J. J. (2014). Research on Performance Evaluation of Bank of China based on EVA (Master dissertation). Hunan University.

Zhang, J., & Aboud, A. (2019). Determinants of economic value added (EVA) in Chinese listed banks. Asian Review of Accounting, 27(4), 595-613.

Zhang, B. Y. (2019). Optimization of the performance evaluation system of S Branch of Z Bank based on EVA (Master dissertation). Northwest University.

Downloads

Publicado

2023-10-19

Como Citar

Song, L., & Shahbudin, A. S. M. (2023). Analyzing the implementation outcomes of economic value added (eva™) at china construction bank (ccb). Revista Gestão & Tecnologia, 23(4), 432–450. https://doi.org/10.20397/2177-6652/2023.v23i4.2726

Edição

Seção

ARTIGO