Enhancing Financial Management in Biotechnology Firms: An Advanced EVA Model Approach

Abstract

This paper analyzes the main characteristics of biotechnology groups and the specific impact of financial control assessment, and proposes a model construction for their financial control assessment using EVA model. The modified EVA model is obtained by introducing non-financial correction coefficients and constructing non-financial correction indicators. The historical EVA values of the biotechnology group were analyzed using the modified EVA model, and the weights of the non-financial correction indicators were obtained by the entropy value method. The results show that the EVA value increased about 1.92 times from 2017 to 2019, and the weight of the biotechnology R&D and innovation capability index has the highest percentage of 0.5427, thus indicating that the financial control system should focus on the investment in biotechnology R&D.