Study On Performance Evaluation Of Enterprise Based On EVA

In recent years, more and more enterprises started to evaluate the performance, stand in the perspective of investors. They not only pursuit of economic profits, but also consider the corporate wealth for the investors. Today, with the continued development of economic globalization and the innovation of the financial concept, the topic that how to measure the operating performance and enterprise value is becoming more and more ardent. EVA as an effective performance evaluation method and a measure of business management, it has been widely used in the foreign countries. The purpose of EVA is to make enterprise managers to create more wealth for shareholders. Enterprise in our country has not set up the concept of enterprise value maximization yet. Most companies still pursuit of short-term economic benefit. The application of EVA remains to be developed.In this paper, a normative analysis based on an empirical analysis has been used. Fragment with the quantitative and qualitative analysis. Through the paper summarizes the research achievements of scholars both at home and abroad, found the vast majority of studies have demonstrated that EVA in enterprise performance evaluation is more effective than the traditional evaluation method, containing more information. On the basis of reviewed and summarized the relevant research around the world. This paper analysis and fragment the adjustment projects about the EVA. According to the actual situation of listed companies in China, this paper have selected seven appropriate EVA adjustment programs include strategic expense, deferred income tax, reserve and so on to calculate the EVA. And make empirical analysis on the performance evaluation of listed companies, which are belong to the information technology industry.This article selects112information technology industry listed company, calculate the EVA during three consecutive years. I found that most of the enterprises’value is negative, the ratio from42%in2009down to29%in2010, the actual performance is not optimistic. But as a result of the financial crisis of2008, the listed companies in our country have been affected, business performance decline belongs to the normal phenomenon, and the EVA calculation result is accord with the situation. The result proved that the EVA in enterprise performance evaluation is effective. Then try to do the descriptive analysis and correlation analysis based on the EVA and the selected seven traditional financial indicators. The analysis showed that, there is a certain correlation between EVA and traditional financial index. Next, made a establishing linear regression between traditional financial index and EVA. Found that EVA and selected six of seven traditional financial indicators have significant ground sex, but not related with total asset turnover. Statistical analysis proves the validity of EVA. Based on the analysis of effectiveness, improve the EVA index, namely the introduction of non-financial indicators, and analysis the data of sample companies in2011, demonstrate the impact of the introduction of non-financial indicators. Combined with the result of empirical research, this paper proposed for enterprise performance evaluation based on EVA.