The State-owned Enterprise Of Our Country Economic Value Added And Enterprise Value Relevance Study

Modern enterprise management objectives have been from the pursuit of maximum profits into the pursuit of the maximization of enterprise value, Investors pay more attention to the enterprise value creation ability. However the traditional accounting index in measuring enterprise value inherent defect, Traditional accounting indexes such as EPS, roe did not consider the opportunity cost of equity capital, difficult to objectively reflect the value of the business. Therefore, economic value added (EVA) emerge as the times require index, EVA index overcomes the defects of traditional accounting indexes, its most important characteristic is to consider the opportunity cost of equity capital, can more realistically reflect the ability of value creation. EVA index is a measure of the enterprise value of index, and the EVA is also the enterprise improve the value of means of management, enterprises can according to their own conditions, to establish EVA oriented enterprise value management.2009December, the SASAC issued the "central modification of person in charge of the enterprise operating performance evaluation provisional measures", and in2010started in the central enterprises to carry out the economic value added evaluation. Therefore, the state-owned enterprises, especially the central enterprises how to implement EVA management is an important subject.This article is based on the background of China’s state-owned enterprises economic added value and value relevance of research. Although from a theoretical point of view, in the measure of enterprise value, EVA index is superior to the traditional accounting index, but how is actual condition need through empirical test. By reading the literature, combined with enterprise value management and EVA theory, through empirical analysis method, selects the50China’s state-owned enterprises listed companies, research on EVA and the correlation of the enterprise value, enterprise value in the measure that need EVA index and traditional accounting indexes combined, EVA indicators will provide more incremental information content in conclusion, finally, to the implementation of EVA prospect, EVA advocated by the cost of capital and the concept of value management, will have a more broad development space. EVA will be in the enterprise of our country widely, EVA management will get more and more attention, and gradually to our managers and investors to receive.