Study On The EVA Adjustment Project Of Listed Real Estate Enterprises In China

Real estate industry is an important industry related to the national economy and the people’s livelihood and also the pillar industry supporting the country’s economic growth.In the late years,driven by strong investment demand,domestic commercial housing sales market continues to heat up and the 1 estate prices all the way up.Housing prices in large and medium cities is staggering.Prices significantly exceeded the ability to withstand the needs of customers and the real estate enterprises was also pushed in the firing line.Under this background,how to scientifically and reasonably evaluate the economic contribution of the real estate industry to the society and guide the healthy and sustainable development of the real estate industry seem important.Economic Value Added(EVA for short)is a corporate financial performance evaluation method,that is based on the after-tax operating profit and capital investment required to these profits,which is proposed by the Stern-Stewart company and widely used in the word.In 2010,EVA is also introduced by the SASAC(State,owned Assets Supervision and Administration Commission)and the SASAC defined its calculation rules.However,the irrationality of the calculation rules is gradually exposed.Because in its practical application,calculating EVA involves more than 100 adjustment projects.The adjustment should be based on the characteristics of the industry,enterprise development strategy,according to certain principles.There is no a set of commonly used calculation methods.For the complex business of real estate,it is particularly evident.This paper combined theoretical analysis and case analysis,empirical analysis and quantitative analysis,to make an overall study on EVA adjustment project of listed real estate companies in China.First,this paper based on the current research on EVA adjustment projects,from the perspective of long-term interests of real estate enterprises find the key factors for sustainable growth,consider the characteristics of the real estate industry and the Chinese Accounting Standard,finally divide EVA adjustment projects into four types:adjustment projects based on repeated calculation,do not reflect the actual situation,do not reflect the main business,based on the key factors of sustainable growth,and design the calculation method.Next,this paper selects 46 real estate listed(?)make a adjustment frame according to the test results.Finally,this paper calculate and analyses the EVA of an company so that to illustrate the actual effect of the above adjustment method.The results of this study shows that real estate enterprises should pay attention to the adjustment method of the capital of interest,long-term equity investment,land reserves,brand promotion and promotion.These adjustments are not only related to the fairness and justice of the performance of the operators,but also has important influence on the sustainable development of enterprises,his paper summarizes the framework of EVA calculation.Try to provide reference for the listed real estate enterprises in our country in the EVA calculation and provide theoretical reference for other industries to determine the EVA adjustment projects.