The Empirical Research On The Listed Companies' Behavior Of Changing The Investment Project In China

This paper is trying to apply a new index as performance evaluative —EVA to empirically research the actions of Chinese listed companies' investment alteration. It shows that under the current company governance structure and governmental supervision, the performance of the company will usually be worse and worse after its investment alteration, which is creating wealth, but destroying wealth, and even more seriously and outstandingly in the following years.The thesis is to analyze the reason of this situation. The special company governance structure and the supervising system is the intrinsic and main reason. Also, there are some extrinsic reasons, like the industry policies, the change of the markets, international factors, and the interference of the local government and project review and approval system etc.To solve these problems, the article gives us some suggestions. Firstly, the state-owned and corporate equities should run freely and the system of independent director should be improved, which needs to build up a healthy company governance structure and reinforce the inspiration and resistance of corporate management level. Secondly, the recommender system should be improved to push the innovation of governmental review and approval system, which will make sure the quality of listed company. Finally, the innovation of supervision system should be much faster, which will ensure the company's actions effectively supervised and the benefits of the investors.This article is to apply EVA to analyze the performance differencebetween before and after the alteration of the collected funds by listed company. It can make people realize the problem clearly, are they creating or destroying wealth? The thesis can answer us clearly, which however the traditional finance indexes can not.