A Empirical Research On The Effectiveness Of EVA To The Performance Of Non-Ferrous Metal Listed Companies

Taking the shareholder wealth maximization as the goal of the enterprisefinancial management has become one viewpoint that the financial managementtheorists and practices accept generally.Since the enterprise slects the valueincreasing as a goal,how measures its added value that becomes the core point of allattention.Making scientific and right evaluation of operating performance of the listedcompanies is helpful to improve and increase their allocation efficiency ofcapitals.At present,traditional evaluation indexes exist some flaws. Focusing onthose problems,this paper will study if a new performance evaluation indicatorscalled EVA（Economic Value Added,Here after refers to as EVA） evaluates theirperformance more accurately and improve their operating performance.The concept of EVA was firstly proposed by Stern&Stewart consultingcompany.Since2001,its branches in China also mainly bases on the EVA target totake“China market company wealth creation and deconstruction ranking”. EVAbelongs to the expansion of the traditional financial index.Though the both havecertain similarity, EVA is all things considered the opportunity cost of corporatecapital and it can unit the investment decision, performance evaluation andbonusincentives together.In this paper, I adopt the ways combining normal analysis with empiricalanalysis.Firstly, this paper’s research backgrounds, contents and structures, methodsand processes will be stated. Then, the paper will introduce the development historyof EVA and adjusting events under new old accountant criterion.Part four is the keynote. The paper attempts to select the financial data revealedof30Non-ferrous metal industry listed companies in China from2006to20105year as samples,and then study on EVA and traditional financial measurement ofperformance evaluation by adopting statistical method that’s general analysis, also known as deseriptive statistical analysis, correlation analysis and regressionanalysis.And then discuss if EVA is more effectively reflect company performancethan traditional financial measurement.Finally, according to the results of empirical analysis, the paper can get that it isfeasible to measure listed enterprise performance using EVA. And then raising somemeasures to improve the listed enterprise ability of value creation in hopes thatimproving the companies performance.