Study On The Relevance Of EVA And Company Value

Along with the financial theory development, went on the market company's ultimate objective is realizing the shareholder value maximization viewpoint to obtain the universal approval, this request weighting company value target had accurately to reflect company value which created for the shareholder. Since long ago, because accountant profit target can reflect in the financial report form simply and brightly, therefore at present still goes on the market by the investors as the appraisal of company value standard. EVA reflects the company value in the certain time which creates for the shareholder, becomes the traditional achievement weight target system the important supplement. There are so many people think this value appraisal system is perfect, but also some scholars hold the different view.This thesis utilizes normative study and empirical study to judge China's stock market should carry on what's value analysis. On the basis of the recalling the existing research literature. It takes the listed companies that 2000- 2002 three years announced EVA ranking former 100 and after 100 as sample analysis, compares the relevance of EVA,accounting surplus and company value that analyzed by empirical study. Results indicate accounting surplus has higher power explains changes of the value of listed companies than EVA, the study further shows that EVA still has high information content. The results of foreign indicate EVA has higher power explains changes of the value of listed companies than accounting surplus. The thesis finds the causes of difference between foreign and China from the EVA theory and the companies and market of China. At last, the thesis draws the advice of China: we can consider drawing into EVA due in the original basis of accounting surplus, particularly in the listed companies of those perform bad in market. To analyze and judge their value, author thinks the ideas of EVA should be promoted in China to guide the conduct of listed companies in more mature self-analysis, and guide the stock market of China be improved .