Research On The Impact Of Economic Value-added Assessment Listed Central Enterprises Financing Behavior

Listed companies in China’s capital market is generally presented to use the equity financing most, followed by debt financing, endogenous financing. This financing structure is particularly prominent in the central enterprises listed companies. According to the revious studies, have found that a unique market system, the centralization of corporate control, the cost of capital is considered as the main factors affect the behavior of corporate finance.Besides, the traditional profitability of assessment indicators of central enterprises have been applied and proven by former researches that they have some impact on the financing structure formation.It has made the central enterprises use more equity capital which led the equity financing preference. The central enterprises have began to use economic value added as one of the assessment indicators. The transfer from the traditional profitability of assessment indicators to EVA is aimed to guide enterprises to create value and operate profit. The fundamental difference between the two is that the economic value added take into account not only the cost of debt capital, as well as the cost of equity capital.As a result, economic value added helps us realize the cost of the equity capital. It is useful to solve the financing problems of central enterprises in China.The paper is based on the financing structure theory. First, review the theoretical research at home and abroad and analyze the preferences of the financing behavior in listed companies of the central enterprises in China. Secondly, point out the influence when the central enterprises are measured from traditional profit-oriented to economic value added-oriented. Further, the paper studies the financing status of the central enterprises listed companies through comparative analysis method and data analysis method in1992-2011. Then establish the T-test and compare the difference before and after the assessment of the implementation of the economic value added. By using the regression model analysis, the economic added value of the central corporate has negative correlation with debt financing. Finally, some conclusions and recommendations are provided.Divided the data into two samples.One is2007-2009, the other is2010-2011.Use the mean T-test analysis to verify whether the two indenpent samples have the same variance. The result shows that endogenous financing and equity financing in the two samples do not change significantly, while debt financing has significantly difference. Then built the multiple regression model to analysis the correlation between EVA(financing costs), size, ROA,EBIT,TIER, LB and equity financing.The results of empirical study show that EVA nefatively correlated with the financing behavior,the other factors have positively correlated with the behavior in2011.