| The performance evaluation of public company reposes on the basis of profit orientation, and does not consider the capital cost, which leads to the fault conception that there are no cost for equity capital. People are often concerned about the net profit in the profit statement when reading the financial report of the company. In their opinions, the company is profitable when it's net profit is above zero. However, the company will not make a profit but"value decrease"if the capital cost cannot be compensated for by profit. This paper doesn't analyze A share market with traditional value assessment index, but with the conception of"value creation".This paper discuss the value of the enterprise and value assessment index from 3 dimensions including book value,market value and inner value. In the paper, the author comes to a conclusion that inner value is the core value of enterprise, and make a value assessment to A share market with EVA. Base on the research of summarize, I find that there are no paper about value creation calculation of the whole market from 1990-2005. The paper summarizes the design procedure of EVA application, get 2 method and define the design procedure according to the EVA coordination principle.The article make a collection of all the companies who come into A share market from 1990 to 2005. the filtered sample size is around 1263. according to the result, the author make a comparison for all the public company, which is in stark contrast with other assessment method used in other countries. The results showed that our A share market did not create but destroy value from 1990 to 2005. 60~80% public companies belied investors'hopes although the total value creation ability increased. Finally, the paper makes a value creation analysis for publish companies according to different industries.The capital intensive industry is hiked up from 21 century. We country need to develop the labour concentrated industry and deepen the capital partially in the meantime. |
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