ANALYZING THE IMPLEMENTATION OUTCOMES OF ECONOMIC VALUE ADDED (EVA™) AT CHINA CONSTRUCTION BANK (CCB)

In 2002, China Construction Bank (CCB) introduced the Economic Value Added (EVATM) indicator as a performance metric linked to value creation and salaries. This article examines the implementation outcomes of EVATM in four municipal branches of the CCB Inner Mongolia provincial branch. Despite two decades of implementation, the EVATM 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 EVATM metric. This article seeks to analyze the reasons behind the implementation outcomes of EVATM 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 EVATM in not just the CCB but also other commercial banks in China.