The Empirical Research On EVA Drive Of Listed Power Generation Companies In China

Since the nineties of the last century, in order to maximize shareholder valuemanagement concept is popular in the United States and Europe. In the U.S., themanagement scientist known as the "father of management" title pidde. Druckerprofoundly pointed out that the economic value added is the use of key indicators formeasuring total factor, it reflects almost all aspects of the enterprise valuemanagement. An authoritative survey of the College of Business Administration Thereport stressed that the management model of economic value added (eva) is the mostwidely applied in the implementation of value management companies.This articlestudies sample enterprise - - our country goes on the market the electricity generationenterprise, it uses traditional accountant appraises the target system to have manyflaws.For example, our country generates electricity enterprise’s traditional accountantthe target when the computation net profit has not deducted the stockholder’s rightscapital cost which it takes, this causes the net profit which calculates not to stand inshareholder’s angle, considered shareholder’s benefit question, calculates theelectricity generation enterprise net profit cannot manifest the rate of return which theshareholder requests; At the same time, produces like this the net profit has operator’searnings operation space; Moreover the pure net profit will not be able to weigh theenterprise future the development ability, will be unable to reflect our country will goon the market the electricity generation enterprise future the condition and so on.Theabove flaw is exactly a question which the economical increase in value introductionelectricity generation enterprise value management can solve.In many Westerncountries, economic value added in large multinational enterprises and number oflisted companies value management is widely used, as many successful enterprisesimplementing value management performance evaluation of core indicators, itsapplication effect have a good effect, and are widely recognized. Westernmanagement scholars have economic value added (EVA) included in the performanceevaluation system of listed companies, as a new management tool to assess the valueof listed companies, China’s listed power companies is also an urgent need to absorband utilize foreign listed companies in the same industry on Eva value managementbest practice, improving the performance appraisal system of China’s listed powercompanies. Economic value added of new advantages of performance evaluation index hasbeen endorsed by several large companies in China and favor, they are starting to trywith EVA trying a new performance appraisal system. So, China’s listed powergeneration enterprises in power generation enterprises in particular what is theeconomic value added measure of management performance? Traditional financialindicators show the reliability of power generation enterprise value? What’s drivingChina’s listed power companies EVA?Based on these questions, the paper from2008-2010 of 30 power generation companies listed on the Shenzhen and Shanghaithree years of financial data for the study, combined with the particularity of theelectricity industry and the actual situation of China’s power generation companies,power generation companies eva model amendment estimates of these powercompanies eva performance, from the microscopic point of view of asset size, capitalstructure and asset operating efficiency of the driving factors for China’s powerenterprises eva design linear regression model to identify the entry point to improvethe performance of listed power generation business Finally, the correspondingcountermeasures and suggestions, including the promotion of the eva strategic ideasto improve the asset quality of power generation companies.