Empirical Study On Performance Measure Of China’s Central Enterprises Listed Company Based On The EVA

Under the drive of market economy, investors pay more attention to the shareholders’ wealthand enterprise value.The maximum of enterprise value has already become the mainstream ofmodern market economy.As for the central enterprises focused by the nationa, realizing thevalue of the state-owned assets so as to realize the maximization of enterprise value will also bethe ultimate goal of enterprise future development.Since2010the SASAC(State-owned AssetsSupervision and Administration Commission of the State Council) has appointed EVA indexinto the central enterprises performance evaluation system, which also marks the central levelevaluation standard is not profit any more;realizing the strategic management to valuemanagement transition. The standard of enterprise performance appraisal from the the targetmanagement to the value management, introducing the EVA index is essential, it will not onlyprofit index, net assets,income rate into account, it is more important to consider the cost ofequity capital,which is the key to realize the maximum of central enterprises.The thesis will briefly discusse the basic theory of EVA and enterprise performanceevaluation, including their concept, EVA calculation formula and the theory origin, and theevolution of enterprise performance.Then to point out the defects of traditional financial indexas the core of enterprise performance evaluation system,and to summarize the advantages ofpresent EVA system. The biggest advantage of the EVA system is that it pays attention to thethe whole Cost of capital, which reflects the value of the enterprise more authenticly thantraditional system.So the thesis will will use the comparative analysis and combine withempirical method to research EVA index value relevance and traditional financial index valuerelevance. The results of the research shows that the current EVA evaluation system isreasonable and effective, and it has higher value relevance compared to the traditional financialevaluation system.Also it will reflect the true performance of central enterprises.