Research On The Effect Of Accounting Profit,Cash Profit And EVA For Value

In the economic market,with the continuous development of the economy,the evaluation of corporate performance indicators changes frequently,it has been unable to meet the needs of shareholders to pursuit of maximizing shareholders' rights.Modern enterprises have begun to enter into a new value management stage to create enterprise value maximization and develop sustainable strategy.In this situation,shareholders began to look for new indicators to evaluate the performance of enterprises,the best indicators to explain the value of enterprises came into being.At present,the main index in the evaluation of enterprise performance,including traditional accounting profit,cash profit and EVA which are important references for managers and investors to analyze the investment situation.Even though many foreign scholars have already research three data about explanation valuation,it is not clear to descript in the existing literature about the ability of explaining between the traditional accounting profit,cash profit and EVA and the enterprise valuation.Foreign scholars are mainly concerned with the value relevance of accounting information in the effective capital market,however,our capital market is only weak and effective,in this situation,and the conclusions cannot be used in our country.In this situation,the essay will research the best data to explain the enterprise value in the traditional accounting profit,cash profit and EVA.The core content of this paper is to build the enterprise value model,and compare these data.It focuses on the financial information of 50 A-shares companies from 2010 to 2014,and compares the traditional accounting profit,cash profit and EVA to the market price model.There are two group of analysis.One of them is explanation by period surplus target for market price.In the stock market,due to the market price always float,in the essay the market price can be as market value.The period surplus target can be as independent variable.The other one is the market value calculated based on the net profit,cash profit and EVA can be as independent variable and then made a regression analysis.Finally,comparing the study results and analyses,finding EVA is the best indicator which focuses on long time earnings generating capacity.On the other hand,even though EVA better than net profit and cash profit,three of them should be used together.