Empirical Study On The Performance Evaluation In Private Listed Enterprises Based On EVA

Since reform and opening, China’s economic development has entered a rapidly changing era. Private enterprises, which are constantly enhancing their competitive strength and management ability, have been in large numbers, and become the main force of China’s socialist economic development. But at the same time, parts of the private enterprise existence the problem of old-fashioned management concept and financial information distortion. The real enterprise business performance can’t be reflected, which will affect investment decision-making and long-term development. So we urgently need to find a kind of scientific, comprehensive performance evaluation method, in order to guide the private enterprise to carry on value management. The concept of EVA (Economic Value Added) produced in the western developed countries and has been widely used as a kind of advanced performance evaluation index. Its advantage is that based on considering equity capital cost, EVA reflect the value creation of one period, which overcome defects of traditional accounting index only considering debt capital cost.And EVA are studied lately in our country, and specialized in view of the private enterprise. Therefore, this article will study the objectives that EVA performance evaluation system applied in private listed companies, trying to through empirical methods of EVA index and the superiority of the traditional accounting index comparison, to find a suitable performance evaluation system for our private enterprise.This paper cardings EVA related research results and theoretical basis in domestic and abroad, and then analyzes the calculation method, the adjustment of project and advantages and disadvantages, and then makes the empirical research. It selects several private enterprises which have been listed for three years by2010, and the financial data from2008to2010, on which calculates EVA value. Then combining the typical traditional accounting index, the paper respectively runs relevant analysis, single regression analysis and multiple regression analysis between EVA, traditional accounting index and the company’s market value MVA, to compare the explain ability between EVA index and traditional accounting index in private companies market value.Through the study, the article will solve following problems:1.The correlation between China’s private listed companies market value MVA and EVA index, and the ability of EVA to explain MVA;2. EVA and traditional accounting index are combined when evaluating private enterprise performance;3. The relationship between the thoughts contained in EVA performance evaluation method and private enterprise management process.