Research On Performance Measurement Based-on EVA Concerning The Listed Company

The ultimate goal of listed companies is to achieve maximum shareholders' wealth, this required that the enterprises'performance measurement system must reflect this concept. The traditional performance measurement systems can not measure shareholder value accurately because they do not consider the cost of equity capital. EVA performance measurement system overcomes traditional shortcoming, considering the opportunity cost of equity capital and rectifying the distortions of profit made by accounting principles, which reflect the value creativity and economic efficiency of the company more accurately. Though EVA has been adopted in many world famous companies and helps them get prominent effects, it is a new concept in China. So it is necessary for us to introduce this advanced performance measures method to our domestic listed companies to establish an applicable EVA performance measures system. This thesis firstly introduced the economic value added theory, including it's development, theoretical foundation and essence, and has made detailed analysis in several kinds of performance measurement methods in theory, the result indicates EVA is a kind of performance measurements which accords with value management, superior to the traditional performances measurement system , reflecting enterprise's value more objective than the accounting profit and computing the shareholder value created by company. Then combining the actual conditions of our country, the thesis did an exhaustive description to the technological content of EVA. On this basis, the thesis has done an empirical research based on the data of listed company on Shanghai Security Exchange in 2002, the result indicates that EVA is superior to the traditional performance measurements in measuring listed companies'value and shareholders'investment return, which is according with theoretic analysis mentioned in above. In the last part of the thesis, it analyze the application effect of EVA performance measurement system which is carried on by Tsingtao Brewery Company Listed, and points out the influence factors of applying the EVA in Chinese listed companies.