Evaluation Studies, Based On The Operating Performance Of The Eva Index Of Listed Companies

With the economic development, traditional performance evaluationsystem derived from account system has shown its limitation. It is suspectedby academic world and enterprises increasingly. A new appraise index,Economic Valued Add (EVA), which is developed by Stern-StewartCorporation, emerges as the times require. Considering equity capital cost,EVA shows its superiority by calculating corporation's created value inperformance evaluation.In Chapter 1, current corporation performance evaluation methods arediscussed firstly. It is indicated that the cost of equity capital is unconsideredin traditional performance evaluation system, which causes the problemessentially. To ameliorate current performance evaluation system, EconomicValued Add should be introduced.In Chapter 2 of this article, the concepts, theory, compute method andrelated system of EVA are summarized with the emphasis on account itemsadjust. As a new appraise index, EVA could reflect added benefit caused byequity cost, and it can also be used to appraise real profit and value created bycorporations all round.In chapter 3, EVA is used to single sample corporation account benefitanalysis, corporation performance analysis between different trades, andcorporation value evaluation. Through these applications, the availability ofEVA is discussed, and the limitation and shortage of EVA are also pointed out.At the end, this paper summarizes that EVA can be used to restrictcorporation behavior in China. As a new angle of view, EVA offers a tool tocorrect information distortion in traditional account system, and it is helpful torealize the ultimate object of corporation. To make EVA effective applied inChina, further research should be carried out, which may bring great changein corporation management in China.