The Research On The Value Creation Ability Of Listed Companies In Shandong Province Based On EVA

In December2010, the State Council officially approved a development plan aboutthe efficient ecological economic zone of the Yellow River delta. Then, in March2011,another development plan-Shandong Peninsula blue economic zone-was approved too.The “Yellow and Blue” development strategies provide an opportunity of the rapiddevelopment of Shandong province. Therefore, it has a profound significance to researchon the value creation ability of listed companies in Shandong province, discuss on whetherthe listed companies have created value for shareholders or have destructed shareholders’value and analyze the driving factors of value creation. Accurate understanding of “thevalue creation ability of listed companies in Shandong province” is the starting point andguiding ideology for listed companies and the government departments to carry out thework, and provide theoretical basis for their decision-making. In addition, this thesisconsiders the characteristics of the capital market and China’s ownership structure. It has aguiding significance in improving the capital structure, the ownership structure of listedcompanies in Shandong province as well as their managerial and administrative level.This thesis adopts two methods, theoretical analysis and empirical analysis, to do theresearch. First, this paper presents the researches on EVA at home and abroad in the fieldof listed companies based on the related literature, analyzes the theoretical basis and originof EVA, discusses the calculation method of EVA as a value creation ability indexaccording to the actual situation, and chooses the appropriate formulate. At the same time,the paper adjusts two variables of EVA for accounting adjustment, and summarizes theadvantages and limitations of EVA method. Then basing on the data of Guo Taiandatabase and the data published by the People’s Bank of China from2000to2010, thispaper does empirical analysis of value creation ability of listed companies in Shandongprovince. Through the analysis and comparison of the EVA, EVA-spread and socialEVA-spread, we can come to the conclusion as follows: The management situation oflisted companies in Shandong province is comparatively good overall. But the corporatevalue creation ability is uneven. The phenomenon of polarization is serious. It is mainly due to the industry factors, scale factors and environmental factors. Finally, based on theempirical analysis results, the paper gives some strategic suggestions: First, to build avalue management system, which takes EVA as the core; second, to improve the marketsupervision, and optimize the laws and regulations; third, to continue to improve themanagement level of the enterprise, and narrow the value creation ability gap of listedcompanies; fourth, to establish a multi-channel fund-raising system, optimize capitalstructure and lower the capital cost.The innovation of this paper is mainly as follows: Firstly, combined with the practiceof listed companies in Shandong province, this paper adjusts the net operating profit aftertax (NOPAT) and capital takes up the forehead (CAP), and then reasonably provides thevalue of EVA and presents the calculation formula of EVA; secondly, this thesis selectssamples and applies EVA to make the empirical research for the first time, and based on theempirical analysis results, the paper gives some strategic suggestions.