Research On The Effection Of EVA Assessment On Enterprise Value Based On State-owned Enterprises

Enterprise value maximization is the goal of business operation. The only and final purpose of the owner’s establishment is to pursue corporate wealth maximization. Whether enterprise has the ability to create value continually is important because it is symbolize of the corporate sustainability. As a business owner, it is understandable for his concern on continued value creation and corporate sustainability. Therefore how to maximize enterprise value is not only a key issue that the corporate shareholders and managers concern, but also a hot spot in academia.As the subject of the national economy, state-owned enterprises have been in a leading position in the market economy. With the expanding of state-owned enterprises, the main problem is how to achieve the upgrade of enterprise value and market competitiveness consistently. This requires the change of business philosophy, which shift from traditional profit-oriented model to value-oriented model. State-owned Assets Supervision and Administration Commission (SASAC) began to implement Economic Value Added EVA assessment in central enterprises, which means as a new performance appraisal system, EVA index is incorporated into the central enterprise performance appraisal system formally. The main purpose of SASAC is to promote the management model shift from profit-oriented to value-oriented model, and then to achieve continuous improvement of corporate value. That makes a new era of value management is coming. Since then, lots of large local state-owned enterprises began to follow the way, using EVA index to assess enterprise value and performance. So can EVA assessment achieve the desired effection of increasing enterprise value? This is just the starting point for this paper.Firstly, we give an account of the research on EVA assessment based on reading numbers of papers at home and abroad. And then analyze the influence mechanism of EVA assessment on the value of state-owned enterprise theoretically. Secondly, we choose the state-owned enterprises of manufacturing industry listed on the Shenzhen and Shanghai stock exchange as the sample, use the data from2010to2013of the listed companies, and then analyze the effection of EVA assessment on the value of state-owned enterprise by using the method of descriptive statistics and regression analysis.Based on the above, this paper concludes that the implement of EVA assessment does a favor on increasing the value of state-owned enterprise. Therefore SASAC should encourage the introduction and implementation of state-owned enterprises EVA assessment, establish and improve enterprise performance evaluation and incentive mechanism based on the assessment of EVA.