Study On EVA That Listed Companies Of High-tech Industry In China Of Performance Evaluation

Performance evaluation is external performance of companies'production, management activities investment and financing, the application of evaluation system will measure the company's operating performance from the different aspects. With the globalization of the economy and innovation of financial, It how to correctly measure the value and scientifically evaluate performance of the company always is a focus question. From 1999 the introduction of EVA in China, has achieved a series of research, the many research bases on split share structure and the old criteria, the function is limited; But research on specific formation is lacking. The rapidly developing electronics industry in China has its own significant industry characteristics compared to other sectors, in view of this, this paper focuses on companies in the electronics industry, the study bases on the sample data on after the split share structure reform and implementation the new criteria.This paper performance evaluation about listed companies of electronics industry in China was system introduced, following, the theory of EVA and MVA was outlined, and related research achievements at home and abroad were recalled. Representative indicators that measure the company's operating performance were selected. On this basis, this paper applied principal component analysis, correlation and linear regression to analyze the data listed companies in 2008.After empirical analysis, I integrated 7 explanatory variables into 2 factors. The three contributions of this paper were as follows:(1) there was a strong positive correlation between EVA and traditional indicators based on Net Income, the evaluation results of using EVA and traditional indicators were consistent, EVA could be used to evaluate the business performance of listed companies. (2) the correlation between EVA and MVA was stronger than it between MVA and traditional indicators, the result indicated that EVA was superior to traditional financial measurement of performance evaluation in measuring listed companies' value. The stronger correlation indicated that the split share structure reform was effective, the stock market was moving towards improving. (3) the integration EVA and traditional financial measurement was much superior to EVA or traditional financial measurement of performance evaluation in measuring listed companies'value, using EVA, at the same time combining with other indicators would more scientific more comprehensive measure corporate'operating performance.Combining empirical research findings, this paper proposed the reasonable indicators of evaluating the company's performance.Finally, this paper introduced shortage and the need of further research.I wish this study of the paper as a reference to promotion and using of EVA in China, accelerate the development of stock market.