R&D Expenditure, EVA Appraisal And Firm Value

China’s State-owned Assets Supervision and Administration Commission started to fully implement EVA appraisal in central enterprises in 2010. EVA appraisal plays more and more important role in the enterprise. In December 2012, the China’s SASAC decided to raise the EVA assessment index weight to 50%. The implementation of the EVA appraisal in our country made great progress. With the development of EVA, our research focus from theory research to application research. EVA appraisal is a management evaluation system, which contains the performance evaluation, incentive compensation and management philosophy. In our country’s 12th five-year plan, the government put forward the goal of building an innovative society. In this plan, the construction of the innovation ability is increased to the height of the strategic level. The government requires companies continue to invest in innovative projects.the enterprise’s spending on R&D growing faster and faster. R&D spending increased year by year. The enterprise technology innovation investment determines the innovation ability of the whole society. R&D activities as an important strategic investment activities of enterprises, is bound to be affected by the new appraisal system. In current situation, how the implementation of the EVA appraisal influence enterprise’s R&D spending? In the present society the enterprise makes the enterprise value maximization as the management goal. Under the background of enterprise management theory, how the EVA evaluation and R&D spending influence firm value?First of all, this paper, through the method of literature research, combing the domestic and foreign research about R&D spending, EVA assessment and enterprise value. First, we study the nature, content and influence factors of R&D spending. we also combed the accounting treatment of R&D spending and earnings management of earnings management. Second, we summarized the EVA’s nature, evaluation, adjustment and effectiveness. We also investigate the present situation of the application of EVA appraisal indexes in our country. Third, this article combed the relationship between the enterprise value with EVA appraisal and R&D spending. Then, we study the principal-agent theory, Schumpeter’s innovation theory, enterprise value theory and the theory of EVA. Through the different theoretical point of view, we study R&D spending and EVA appraisal’s mutual influence on the enterprise value. Finally, this article, through the method of empirical study, using China’s a-share listed state-owned companies large sample data empirically inspect the relationship between R&D spending, EVA evaluation and enterprise value, we found that:The implementation of the EVA appraisal can effectively promote enterprise increase R&D investment; And enterprise value is related to the intensity of R&D spending, spending on R&D can effectively promote the enterprise value. The implementation of the EVA appraisal has weakened the R&D spending to promote enterprise value. The enterprise’s R&D investment efficiency did not improve.The innovation point of this essay lies in:our study makes the research of EVA deep into the micro level of assessment index. We investigated the adjustment s reasonableness and effectiveness in the process of calculating the evaluation index. At the same time, we associated R&D spending with EVA appraisal to study their common influence on corporate value. This essay not only study EVA’s influence on the scale of the R&D spending, but also the impact on R&D efficiency.