Research On The Comprehensive Performance Evaluation System Of Real Estate Enterprises Based On EVA

Real estate is an important part of the modern national economy,playing a prominent role in improving residents’ housing environment,solving employment problems,and promoting national economic development.Since the beginning of the new century,with the deepening of China’s housing marketization reform,the real estate industry in China has achieved rapid development,and real estate related enterprises have also achieved good performance.In recent years,in order to further regulate the real estate industry and achieve healthy and sustainable development,the country has strengthened macroeconomic regulation of the real estate industry.In macroeconomic regulation,some enterprises in the real estate industry have not changed their traditional development concepts in a timely manner,have insufficient understanding of the policy of "housing,housing,and non speculation",and have insufficient understanding of the urgency of "de inventory".There are various problems and difficulties in development.Evaluating the comprehensive performance of the real estate industry can help to better identify outstanding problems in the industry,improve performance levels,and promote the industry to better adapt to the new development environment,achieving healthy and sustainable development of the real estate industry.The performance evaluation indicator system is the foundation and tool for evaluation.Based on the analysis of the commonly used comprehensive performance evaluation indicator system for the real estate industry in China,the study found that the comprehensive performance indicator system of the State owned Assets Supervision and Administration Commission lacks the characteristics of the real estate industry,overly emphasizes financial performance,and lacks specific and detailed indicators for management performance indicators.Although the comprehensive performance indicator system of the Real Estate Industry Federation has strong industry characteristics,it also has problems such as a large number of indicators,qualitative indicators,and absolute indicators.Therefore,the study reconstructed the comprehensive performance evaluation index system of the real estate industry using expert opinion survey and Analytic Hierarchy Process.This system includes two primary indicators of financial performance and management performance,eight secondary indicators,and 20 tertiary indicators.The comprehensive weights of financial performance and management performance are 0.5 and 0.5,respectively.Compared with the widely used comprehensive performance evaluation system,this system not only has the characteristics of the real estate industry,but also has refined management performance indicators and increased weights.At the same time,the indicator system uses EVA to measure the profitability of enterprises,which can more accurately reflect the profitability of the real estate industry.In addition,the indicator system has significantly reduced indicators at all levels,making operation simpler.The study selected 22 listed real estate companies from the "2022 China Real Estate Comprehensive Strength Top 100 List" of the Real Estate Industry Federation as evaluation samples,and used the evaluation index system constructed by the research institute to empirically evaluate the comprehensive performance of the domestic real estate industry.It was found that the relevant conclusions were roughly consistent with the evaluation conclusions of the Real Estate Industry Federation,which also affirmed the application value of the index system.After evaluation,it was found that the comprehensive performance score of China’s real estate industry has been increasing year by year from 2019 to 2021,but the performance of various financial performance indicators is poor,such as high debt repayment risk,poor profitability and operational ability.Therefore,it is recommended that the real estate industry improve its debt paying ability,reduce overall liabilities,strengthen sales capabilities,strengthen cost control,and actively promote industry restructuring.The main contributions of this study are as follows:(1)Taking the real estate industry as the object,from the perspective of comprehensive development,combining financial indicators with non-financial indicators to construct a comprehensive performance evaluation index system for the real estate industry.(2)Based on the issues revealed by the evaluation results,systematic suggestions have been proposed from the sales side,debt side,and cost side,and it is believed that as China’s real estate industry enters a "mature period",real estate related enterprises should increase their efforts in mergers and acquisitions.