Evaluation On The Application Of Economic Value Added Of China's Listed Companies Wealth Creation

Fortune does not only mean the increased number in the financial report,but means a kind of affection. On the stock market, it turns into wealth effect.Wealth comes from the improved achievement and the wealth effect. However,in stock market, it rooted in the value creation from listed companies. Thisarticle studies current status of listed companies in the view of singlevariable,multi-analysis and time analysis and concludes that the wholecompanies can create only a little fortune. From the linear model, the authorfinds that fortune creation is related with earnings scale actively and withassets size negatively. By learning three continued years' reports, theauthor can't find regular changes of traditional financial index and economicvalue added. So how to enhance the ability of value creation is a big problemfor listed companies. In this essay, the author enumerates some reasons tostate how to improve EVA, and demonstrates that EVA is not only a financialindex, but a kind of management style. So some suggestions on management byusing EVA are made at the end of this essay.