The Real Estate Listed Companies Based On Eva Value Management Research

Since1980s, value replaced the dominant position of the profits, which is viewed as landmark events. Value management goal is to maximize shareholder value, which is based on the consistent value creation. EVA pays special attention to capital cost. Only when the enterprise creates more gains than the cost of capital, shareholders’ wealth will increase. EVA which has worldwide influence offers a new management idea and provides the brand-new thoughts for enterprise value creation.Through rapid development in the last decade the real estate has become the national pillar industry. Therefore, it is of great importance to analyze the value creation ability of the real estate and explore the methods increase value. Especially since2010, the government took the strictest regulation on the real estate, which has to raise the rate of their money. So the cost of capital is increasing. In view of this, this article selects EVA value management system to analyze the value creation ability of the real estate.First this paper reviews the literature of EVA and value management. Through the review of the literature we master the research situation and find the support in theory; Then from the basic theory of EVA and value management, this paper expounds the definition of EVA, the background, the advantages and disadvantages, concepts and characteristics of value management. It discusses the relationship between EVA and value and is concluded that EVA can reflect the value of enterprises. It introduces value management system based on EVA, which consists of performance assessment, management system, incentive system and concept system. Performance assessment and management system is the key of this research; Third according to the theory research and combined with the characteristics of real estate enterprises, this paper selects49listed real estate enterprises and with the2007to2009data of these companies we analyze the ability of value creation and the validity of EVA. The empirical results show that in general, real estate listed companies are creating value, but there are still a lot of enterprises which are destroying value. The value creation ability is not strong and capital efficiency is not high. Finally we put forward that real estate listed companies should ascend value driving factors to improve the value creation ability and create more value.