Research On The R&D Behaviors Of Central Listed Companies Based On EVA

Economic Value Added (EVA) is an indicator of measuring the enterprise operatingperformance, and is equal to the Adjusted Net Operating Income minus the Cost of Debt andEquity. It is the rest profit which deducts all the capital cost, representing the real wealth. In2010，SASAC began to use the assessment method of EVA, which replaced the ROA as thecore performance indicator. This implement shows performance evaluation of the centralcompanies transforming from the net profit orientation to the value orientation.Obviously, we figure out that, R&D behaviors in companies have correlation with theability to create value. Not only they can promote the enterprise value creation abilityfundamentally, but also be affected incentivily or bindingly by the performance appraisal. Thechange of R&D behaviors evaluation method may reflect upon the enterprises’ R&Dbehaviors. Accounting Standards treat the R&D spending as a deduction of net profit,however,the size of the R&D spending have little impact on EVA, encouraging enterprises tostrengthen R&D behaviors.Based on survey of the128central listed companies in the years from2009to2012, thestatistical description of the R&D behaviors status shows the fluctuated dropping problem ofthe overall R&D intensity, the gap problem between the industries and regions. The results ofthe Z test and the T test show that, except for the high-technology industry have a significantchange of the R&D spending, the R&D strength, the overall and the change of the four typesof elements together with the common industry are not significant at all. According to theresult of general regression, EVA are positively related the R&D spending. There is nosignificant relationship between the net profit and spending on R&D. The introduction of EVAhas a significant impact on the R&D spending. And the results of quintile regression showsthat only on the high site, the EVA has a significant impact of R&D spending, net profit havenegative impact on R&D spending.At last, from the perspective of value management, we putforward suggestions to carry out the EVA evaluation, optimize the R&D behavior of thecentral listed companies.