The Analysis Of Application Of Financial Management Model Based On EVA In Listed Companies Of Heilongjiang

The concept of Economic Value Added was put forward by the consulting company of Stern Stewart Co. in the 1980s. This concept is obviously distinguished with the traditional performance evaluation, because it takes cost of equity into consideration, so substantially it is evaluating economic profit of companies. With regard to companies, Economic Value Added is not only evaluating the performance of firms, but also a kind of construction of comprehensive financial management, which can expand to the entirely company. At present, there are more than 400 companies put EVA into use, for example, United States Postal Office, Coca-Cola co., Sony, Siemens, and so on.This paper is start with the summarizing of the related theory, and then set up financial management based on EVA in line with the content of financial management. This financial management model includes investing on EVA, financing on EVA, and dividend on shares on EVA. After that, we shall analyse the relevance between the financial management based on EVA and corporate strategy, point out which kind of corporate strategy is mate of financial management based on EVA. According to above discuss, we start the analysis of applying financial management based on EVA to listed companies in Heilongjiang. According to the analysing and grouping the listed companies of Heilongjiang in view of corporate strategy, afterwards, select the group which is applicative to EVA as the sample, calculate the indicators of EVA, and then point out which is creating wealth and which is damaging wealth; analyze the sample how to apply the financial management based on EVA:pick out some specific sample to canrry out the investing based on EVA, the financing based on EVA, and the dividend on shares based on EVA. At the same time, we shall also analyse the impact on corporate strategy after the adoption of EVA. At last, we shall discuss the possible problem and strategy when listed companies in Heilongjiang adopt the financial management model bansed on EVA.