EVA Performance Evaluation Of Assets Reorganization Of Listed Companies In China

Now the assets reorganization has become the mainly operating mode of the listed companies to optimize the allocation of resources and improving the operation efficiency. The ultimate aim of the reorganization of assets of listed companies is to improve operational performance and maximize shareholder interests. So it requires that the methods of measuring the listed companies'performance should reflect the real value of creativity accurately.The main evaluation methods of domestic companies listed performance are price changes in the law and financial analysis. Because of China's securities market efficiency constraints and the impact of capital costs incompletely consideration and accounting information reflecting the true operating enterprise distortion, the two methods cannot accurately reflect the true performance of the company's assets after the reorganization changes. Economic Value Added (EVA) assessment method overcomes the shortcomings of traditional performance measurements and in the light of all the capital cost invested enterprises, through some subjects of the accounting adjustments to more genuine response to the operating performance and value of the creative ability.Currently the most researches focus on the application of the EVA valuation of enterprises and operating performance evaluations. In this paper, the EVA evaluation method has been applied to the performance evaluation of the reorganization of assets of listed companies: introduce the theoretical basis and calculation model of EVA; compare the differences between the EVA performance indicators and the traditional economic indicators. Finally the author use EVA evaluation method to analyse performance of assets reorganization of listed companies between Shenzhen Stock Exchange and Shanghai Stock Exchange in the year 2007 and 2008.