Eva And Enterprise Value Of The Correlation

Researches about enterprise value have been the essential issues which arise among the current accounting financial mangers. With the present intellectual economy along with rapid information technology development, enterprises are facing the challenging from all different aspects, such as, with tremendous changes from competitive business environment, profitability model and risk barrier. Thus, the enterprise values with relevant issues are getting complicated in terms of revaluation the enterprise value in an accurate manner. This instance is becoming more pronounced in information technology industry. Compare with traditional financial management theory which set the criteria against earnings per share, net yield of assets and accounting net income when they carry the revaluation for the listed companies. All of these assessment methods are not truly reflect the information technology enterprises'organizational values as well as these traditional revaluation methods are not the best way to revalue information technology enterprise corporate value.Economic Value Added (EVA) as a very popular valuation methods in the developed countries, has unique advantages in assessing the IT company's corporate value. However, there is different between the capital markets of China and developed countries. Whether EVA theory is applied in China, and other indicators to assess the value of comparison, EVA targets more accurately reflect whether China's information technology value of listed companies, and how EVA theory use to help improve China's information technology company's enterprise value, is the focus of the study.Based on the analysis of the traditional method of assessing the value IT companies in the assessment of the value of the applicability, that the value of several common assessment method is not very good assessment of information technology company's corporate value. On the basis of this theory have been introduced EVA. The article focused on the research and EVA index to assess the value of related enterprises, has been selected by the two cities listed in Shenzhen and Shanghai all the information technology industry companies for a total of 71 samples of the company, in the regression analysis conducted on the basis of economic implications explained that the listing of China The adoption of EVA index system to assess the effectiveness of the value of empirical results to be interpreted. Finally draw conclusions that the EVA more than the traditional indicators of China's listed companies to explain the business value.Results from the study, draw a few conclusions of this paper: 1. EVA and information technology in the business value of listed companies exist in theory, the higher the relevance, with very high information content. 2. Explaining the company value than the traditional accounting indicators have higher explanatory power, but can not completely replace traditional accounting indicators. 3. EVA indicators include the idea of merit in China's information technology industry in the promotion, to guide China's information technology industry companies more mature and self-analysis. 4. EVA use of information technology to enhance the value of the business...