The Research On Applying EVA To The Performance Evaluation Of Listed Company In China

Economic Value Added (EVA) has been getting more and more popularity all over the world ever since it was invented and developed by Stern Stewart & company in the 1990s. Research overseas shows that EVA index is better than traditional performance evaluation index in appraising a company' s true value, which is proved by the good performance of EVA in western corporations. It also cause huge reverberate in academic field after it introduced into China. At present, there are few empirical researches in China about EVA, in which the existing ones are some simple judge and use. In empirical part, this thesis chooses all companiesThis thesis aims at finding out whether it will gain success or not when applying EVA to China like its good performance abroad. It also research whether EVA index is better than dependent variable in appraising the change of a company' s value. Choosing EVA index as the research target, this thesis firstly introduces EVA system and its relevant theory; then introduces the method how to calculate EVA; and it gives a comparative analysis between EVA and traditional performance evaluation index. In empirical part, this thesis choose MVAR to be dependent variable , meanwhile choose EVAPS and traditional performance evaluation index such as NI, ROA,ROE and EPS to be independent variable and do relevant analysis. In the end, points out the shortcomings of EVA index and give some suggestions. The research has conclusion as followed: EVA index has some degree but not a obvious degree of explaining corporation value. Second, EVA index has some additional information over traditional performance evaluation index. We can' t just use EVA index as the only evaluation index. Corporation should both use EVA and traditional accounting index when evaluating the company' s intern value.EVA index has a good foreground in China. The capital market in China is getting more and more mature. When the correlation of the market' s evaluation about the price of the stocks and EVA value to some extent, EVA will be popularly used in Chinese listed companies, and the ability of explaining corporation value will be more and more strong.