Research On The Financial Performance Evaluation Of R Corporation

Modern companies will encounter agency problems,and internal managers will infringe upon shareholders and the interests of external stakeholders.In the process of achieving the maximization of shareholders' wealth,the company's financial performance evaluation is indispensable.At the present stage,whether it is a rating company,a consulting company,or an internal management of the capital market,the evaluation system based on net profit is used to assess the financial performance of the company.However,considering the traditional method of accounting standards,when faced with a city investment company with large equity capital and non-recurring profit and loss,it may fail to provide effective evaluation results due to its limitations.Such as R company,a city investment enterprise which involves the development of real estate development and financing needs of the new district,has become an important participant in the financial market.Under the economic background of "de-inventory" and "deleveraging",if the financial performance level cannot be effectively rated,it may lead to the debt risk and then affect the real economy.Therefore,we need a set of financial performance evaluation method to adapt to the future development trend,and guide the management science to set the development strategy of the enterprise and improve the operating efficiency.This paper selects R company for case analysis.Firstly,the general situation of R company is introduced,its special properties and capital structure are explained,and its composition and operation field are clarified.Then the traditional performance evaluation method is introduced,and its financial performance indicators are calculated and evaluated.Then,based on the problems existing in the operation of R company,the paper discusses the deficiencies of the existing methods.Then,EVA theory was introduced to construct an EVA evaluation model suitable for R company's characteristics,and then used the model to evaluate the financial performance of R company.Through comparative analysis,it can be seen that EVA theory has its unique applicability in city investment company and real estate field.Finally,the financial performance of R company is analyzed and evaluated from two perspectives of core indicators and auxiliary indicators,and the management suggestions are put forward.This paper introduces the financial performance evaluation and EVA theoretical background,and then studies the effectiveness and pertinence of financial performance evaluation through case analysis.The results show that the traditional performance evaluation method is biased and the evaluation result lacks fairness,which makes it difficult to reflect the value created by the enterprise.EVA theory makes up for the deficiency of traditional performance evaluation.Avoid the influence of subjective factors,reliable financial performance evaluation results,and incentives,the management system and management idea has carried on the organic fusion,make personnel and shareholders to have consistent interests,help to achieve the goal of maximization of shareholder wealth.In addition,EVA method is conducive to the establishment of corporate culture atmosphere.