Research On Application Value Of EVA In Listed Company Of China

Based on shareholder's value, EVA system has caused extensive concern of the domestic and international theory and practice circle. Domestic researches mainly concern its concept frame, function mechanism and (a small amount of) value dependence. Empirical research of EVA in performance evaluation, management, incentive and mindset system is scarce, which form the obstacle to know correctly the application value of EVA in listed companies. Based on the essential of EVA, we empirically study the application value of EVA in listed companies of China from the viwpoint of econometric methods, evaluation system and incentive mechanism.Firstly, we systemly investigate the relationship between company value and short-term profit of listed company in stock markets of Shanghai and Shenzhen, compare the value dependence of EVA and traditional accounting performance estimate, reveal the industrial characteristic of the correlation between company value and short-term profit of listed company of China. The results indicate that, on the Chinese capital market, EVA doesn't have better value dependence than the traditional accounting performance; Except transportation, farming, forestry, husbandary and fishing trades, company value is significantly positively related with synthetic short-term profit of other trades, but the explanation degree to company value of profit information in different trades is widely different. Accounting profit has better value-explaining ability than economic profit in electrommunication and chemical trades;on the whole, value-explaining ability of accounting profit measures is better than that of economic profit ones, and it is higher without controlling scale effect.Secondly, in terms of "economic profit", we investigate merger performance of the Chinese listed company; offer the evidences that mergers in recent years are unfavorable to shareholder's value. The results indicate that, value-creating ability of more companies is reduced after merging; on average, value-creating ability of the sample company drops after merging. Paired-Sample T Tests of company performance in different years and based on time interval all show value-creating ability of the listed company after mergering is reduced.