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主题:解读国资委新政策——央企实施经济增加值考核 -- 土拨鼠yuanap

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家园 as I mentioned in previous p

post, EVA is a measure with both merits and weaknesses. One weakness is it fails to take into consideration the volatility (business and industry risk) of different firms.

BTW, financial service should be treated separately--leave this aside.

The gov. needs to make adjustment to the interest rate to reflect such risk difference. One can not use ONE raw rate.

Hydro Electric is very stable business. I know it because my friend is in charge of the audit of one of the largest NAmerican Hydro firm. EVA is still a good tool in reduce unecessary capital expenditure--but firm can go around it by changing capitalization criteria.

Financial service is special industry. Even in US conglomerate, it is evaluated separately from manufacturing/utility divisions. I am surprised that Guo Zi Wei does not separate electric utility from financial service, THAT'S COMMON SENSE in America.

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