An Analysis On The Performance Of Chinese Listed Securities Companies Based On EVA Method

Chinese security market has experienced20years of development. But they is stillin its primary stage, comparing with western countries`s security markets. Securitymarkets of western countries have established the developed operation order of thesystem, large size, and perfect laws and regulations. The security companies have richform of securities investment. But the operation of China`s security market still existsmany problems and the proportion in the total social financing is much lower than thewestern developed countries`. With the development of China`s economy, the enterpriesdemand much more capital, and the security market provide the enterprise a goodfinancing platform. At the same time, along with the development of society and peopleliving standard, the concept of investment greatly changes, and more investors put themoney into the stock market, in order to get higher yields. As the bridge between issuersand investors in the security market, security companies becoming more and moreimportant. Security business of security companies will affect the healthy development ofthe security market, so its very important to study the security companies.This paper uses economic value added (EVA) method to analyze the operationperformance. EVA uses adjustment data and requirement investment return rate tocalculate the income of the company, considered a method of calculating the truecompany income. EVA model takes the equity cost of investors onto consideration, whencalculate the profit as the opportunity cost. In the paper, the first part analyses the statusof development of the listed security companies, the kinds of security business andexisting problems, and analyzes the characteristics of the security companies’ business.Second, to introduce the EVA method. Then, use EVA method to evaluate theperformance of the security companies, then transform EVA into REVA to rank andcompared. Divided The listed security companies two parts according to average REVA,and analyze two part companies from different angles to give some suggestions.