An Analysis Of The Driving Factors Of Enterprise Value Of Real Estate Listed Companies In China

China’s real estate started later than that of foreign countries start. Since the implementation of monetary housing-distribution system in1999, China’s real estate industry has achieved great development for a decade and has become the pillar industry of the national economy. After the financial crisis in2008, the real estate industry in other countries is gloomy, but China’s real estate industry outshines others. However, national policy regulation of the real estate industry has intensified in recent years. Especially since2010, the state repeatedly raises reserve requirement ratio and deposit and lending rates of banks, resulting in the increasing proportion of equity capital and financing costs of the real estate enterprises. The urbanization process has fostered a large number of small and medium sized real estate enterprises. The fierce competition makes real estate enterprises focus on enterprise management, especially value-based management of enterprises. Therefore, to discover value drivers of real estate enterprises from the perspective of value-based management in order to improve the value of the real estate enterprises is very important.This paper first reviews literatures relevant to EVA value appraisal system and corporate value management both at home and abroad, and then confirms the research content and methods. Following that, the corporate value theories, the connotation of EVA and its calculation adjusting methods are introduced in great details. After that, the empirical research method to compare EVA with the traditional performance indexes based on the data of87listed real estate enterprises in China qualified for this research from the eight years of2007to2014. At last, the necessity of introducing EVA to the corporate value appraisal system among real estate enterprises in China is analyzed. Build panel model with selected study sample, start from financial evaluation indicators including operation capability, debt paying capability, profitability and growth ability of enterprises, resolve EVA layer upon layer, find the financial indicator which has maximum correlation with EVA and namely the driving factor with maximum influence on enterprise value of listed companies in real estate industry in China, and then start from the driving factor, obtain countermeasures and suggestions for improving enterprise value of Chinese listed companies in real estate industry, thus to create more value for real estate enterprises in China.