Study On The Performance Evaluation In Growth Enterprises Market Board Based On EVA

On October 30, 2009, the GEM(Growth Enterprises Market) market in Shenzhen Stock Exchange was officially launched. In the last nearly 18 months, how the GEM market going on and the performance of listed companies is attracted the attention of the widespread community, whether market performance of the high price-earnings ratio and the high valuation is linked to corporate performance truly become the focus of the capital market. However, so far, performance evaluation research on the GEM's characteristics, which are high technology content, high growth potential, strong profitability, high risk characteristics of business is also little.In this paper, we study of companies listed on the GEM and introduce the EVA to the GEM, and use empirical analysis to verify the feasibility of EVA index evaluation for listed companies'performance and to compare result of evaluation of the GEM Listing by using EVA index with by using traditional financial indicators. The aim of this paper is that to provide the corresponding performance evaluation based on EVA for GEM listed companies.This paper makes the correlation and regression analysis of EVA and traditional performance indicators by using empirical research methods. The main conclusions are as followed: (1) In general, the GEM listed companies has got a good operating performance, 69% EVA of enterprises is positive which is meaning that wealth of shareholders has increased, while 31% is negative, damaging part of the wealth of shareholders. From the overall trend, the average EVA value of the sample companies has increased for nearly 87.17% in 2010 than in 2009, which indicates that the development of GEM listed companies in China has great potential and the development of the market situation is optimistic. (2) EVA of listed companies has a strong explanatory power for MVA which verifies that the feasibility of using EVA to measure performance of GEM listed companies and also verifies that the effectiveness of China's capital market has improved significantly. (3) EVA has a stronger explanatory power of the MVA capacity than the traditional performance evaluation. Compared with the traditional performance indicators, EVA has a stronger interpretation of the MVA capacity, but it has not still completely replaced the traditional performance indicators. To develop a more comprehensive and rational performance evaluation methods, the performance indicators should be EVA combined with the traditional indicators.