Research On Performance Evaluation Of Real Estate Enterprise Based On Factor Analysis And EVA

Enterprise performance evaluation as one of the difficulties of enterprise management has always been the hot issue in the field of management science. To establish a scientific, reasonable and effective business performance evaluation system, it can guide business activities and help managers to find the advantages and disadvantages of their enterprises. Thus enabling enterprises to maintain their competitive edge and to shorten their gap in order to enhance their core competitiveness and achieve the strategic goals.With the China’s socialist market economy realization, the prompt growth of the real estate industry has made a big contribution to our national economy construction during the process of rapid economy development. The government strongly regulation made the real estate industry has an important reform because the2008financial crisis made a profound change in our market environment. In this context, evaluate the performance level of real estate enterprises has a very important practical significance, and it also played an crucial role in our development of national economy.The enterprise performance evaluation theory was generalized firstly, and then two performance evaluation methods--factor analysis and EVA were discoursed in this paper. On this basis, use the2012financial data of30real estate companies in stocks of Shenzhen and Shanghai as a sample to do the empirical research. The research picked evaluation indexes that match the characteristic of the real estate enterprises as the original variable indicators of factor analysis, the indicators were screened from four angles including profitability, operational capacity, solvency and development capacity, finally, the paper obtained five factors. Next, the article used EVA performance evaluation to rank the business performance of30real estate companies. It includes choose calculating adjustment items and calculate the value of EVA for each sample firm. Considering the scale effect, the paper use EPA (EVA/total invested capital) as ranking index. When got the evaluation results of two methods, it used the comprehensive ordinal method to estimate the relevancy that between factor analysis and EVA, then selected the appropriate weight ratio to integrate the two performance evaluation results, and obtained the final consequence.Using a performance evaluation method that combined of factor analysis and EVA not only fully reflects the financial information of enterprise, but also makes the evaluation result more real to reflect the wealth that the company created for their shareholders by considering capital cost...