China's Listed Companies The Effectiveness Of Eva Performance Evaluation Empirical Research And Applications

EVA has been growing popularity and widely applied abroad since its naissance it was declared to be the "real key to creating wealth" and "today's hottest financial idea and getting hotter." While our enterprises apply EVA they confront a contradiction. Because the EVA is well known and appreciated, its validity is suspected at the same time. This paper is aimed to judge the validity of EVA used to measure the performance of listed companies in China.1051 non-financial stocks in Chinese A stock market are selected as total sample. We utilize the account book and EVA of sample, published by Stern-Stewart company on 《Finance issue》 . A econometrics model is set up then We use the model to regress EVA of sample and traditional performance measurement indexes to judge the validity of EVA by normative research and empirical analysis.The conclusion indicates that EVA and traditional performance measurement indexes have difference on absolute validity. But on relative validity they are identical. Finally, we analyze relatively the total and different industries performance of listed companies by EVA.