Study On The Market Value Of The Shares Of The Jiugang Hongxing Company’s Management Program

The capital market has achieved the full circulation since the equity division reform started, which stimulates the benefits of various shareholders achieving the target of market value consistently. The spread of equity incentive institution makes the benefits of management groups in listed companies and various shareholders the same. The operation target of domestic listed companies shifting from the pursuit of profit and assets to achieving the best benefits of shareholders, namely it purses the best benefits of the company. The market value of listed companies is the comprehensive indicators to represent the actual strength of companies, which not only embodies the operation capacity and the prospect of the future earnings of the company, but also presents the interaction relationship between the enterprise, shareholders and the societies. Actually, the market value management is the signal based market value of listed companies and applies the various scientific and standard value operation methods to achieve the best value of company. The core of added economy value is to measure the relationship between the enterprises earnings and the capital investment, which is the balance of operating earning after tax and the whole capital cost including equity cost and debt cost. As a kind of strategic management behavior, the value management has global impact on the listed companies, so we must attach great emphasis on the systematicness and sustainability of management task.The paper designs the value creation management frame based on the EVA criterion through the analysis of the management status of the JiuGangHongXing combing with the whole status of the domestic iron and steel industry based on the Du Pont System. The paper illustrates the value creation frame based on the EVA criterion should include the company asset allocation, business procedure, capital structure and company governance structure. Then, the paper introduces the specific implementation procedure and evaluation methods of the case in details. Finally, the paper illustrates the faced problems and gives the objective evaluation and concludes the final case that better than the traditional finance methods and pays great emphasis on the advantages of enterprise capital cost.