Private Enterprise Operating Performance Evaluation Research Based On EVA

Since the implementation of reform and opening-up policy, China’s economy rapidly developed, and there emerged a large number of private enterprises, which have become the main force of economic development in our country, and their business capacity and management level are constantly improving and enhancing. However, the existing operating performance evaluation system of many private enterprises has many drawbacks, such as:pursuing short-term interests and ignoring long-term development, the distortion of financial information caused by abiding by the accounting conservatism principle, etc. EVA is economic value added. This concept came from the United States. As a kind of advanced performance evaluation index, it is widely used. Its superiority is that EVA reflects the enterprises’ value creation during a certain period on the basis of considering the cost of equity capital, and it overcomes the defect that the traditional performance indicators only consider the cost of debt capital. But the research on EVA operating performance evaluation system starts late in our country, and the related research is gradually spread and deep, but the special study on EVA operating performance evaluation system of private enterprises is much less. Therefore, this paper applies EVA performance evaluation system to the listed companies of private enterprises, and tries to compare EVA index with the traditional performance indicators through the theoretical and empirical analysis, so as to find a set of performance evaluation systems which are suitable for the development of private enterprises in our country.On the basis of settling the related research results of EVA at home and abroad, this thesis select private enterprises which have been listed for five years between 2010 and 2014 as the samples, arranges their financial data and calculates EVA value of each year. At the same time, it selects four traditional performance indicators to make a comparison, and through correlation analysis and regression analysis and other methods, it tests EVA’s application effect and operating performance evaluation in the listed companies of the private enterprises. The conclusions of empirical research are:1. Using EVA index to evaluate the operating performance level of private enterprises is effective.2. Compared with the traditional performance indicators, EVA indicator has a stronger explaining ability for the operating performance of private enterprises in our country.