| As an important pillar of national economy industry and social aspects of great concern to people's livelihood industry, From 2007 to 2009 the real estate market of China experienced ups and downs and then a rapid rise.Real estate companies also experienced from joy to blankly and then to a great surprise.In early 2009, many real estate companies were still faced with financial pressure and even the risk of broken cash flow, but as the real sales record of real estate market achieved the highest level in history, the land market was also heating-up. The real estate industry is a cyclical industry which is vulnerable to the macroeconomic policies. The ups and downs of this market have made known the great uncertainties which will be further amplified by the linkage of capital market. The financial storm triggered by the U.S. subprime crisis has resulted in severe turmoil in global financial markets including China. The stock markets of the whole world experienced ups and downs.Needless to say the fluctuation Shanghai and Shenzhen stock markets the Hong Kong stock market was also involved,and the Hang Seng Index fluctuated with a number of market indicators to record high. The subprime crisis which was due to Fannie Mae and Freddie Mac crisis spread from the real estate market to the credit market,and then it evolved into a global financial crisis. Therefore it is an important issue that enterprises and the market remain stable and rational to promote the industry's long-term healthy and prosperity.Performance evaluation is always an important part of enterprise management, and it is also one of the major research topics of capital market and financial management field.It is generally accepted that shareholder wealth maximization is the goal of financial management,so the accurate measurement of the increase of shareholder's wealth has become the focus of attention. The most direct and simple way is to calculate the market value added (hereinafter referred to as MVA) which is equal to the listed company's market value minus all the capital invested. However, MVA is hard to use in the daily management.A large number of empirical studies indicate that economic value added (hereinafter referred to as EVA) is highly related with MVA. So the changes of MVA can be reasonably explained by EVA. As a performance evaluation method of business,EVA takes into account the opportunity cost of equity capital and necessary adjustments to unreasonable items in accounting systems and it overcomes the defects of traditional performance evaluation methods which can accurately reflects the increased wealth of corporate shareholders and other related groups.EVA builds up the method based on the concept of value creation which makes enterprise management simple,direct and logical.With this method shareholders,potential investors,creditors and other related groups can make correct decisions because they can find the real value of a real estate company. In this thesis we aims to use EVA performance evaluation methods to explain the real value of Hang Lung Properties who has a long-term investment philosophy of holding investment property and can always create business value for shareholders and other related groups. The research is based on solid theories and real cases in combination with comparative study of law,normative analysis and case studies a of analysis methods.The EVA of Hang Lung Properties is detailed deducted in the research,and the comparative analysis of EVA indicators and traditional financial indicators is to identify the deep-seated reasons for Hang Lung Properties improving the business performance solutions. This perspective is unique, not only for the operators,shareholders and other related groups of the real estate business to find value with the new performance evaluation concept,but also provides a new way for real estate-owned businesses to create value. |
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