Study On The Validity Of EVA Assessment Of Central Enterprises

The last century ninety’s economic value added by Stern Stewart&Co.(EVA) index was introduced to our country, causedomestic related scholars, gradually rising from theoretical research to studyand practice, to the SASAC will EVA assessment applied to the centralenterprises responsible person assessment provides theoretical support andeffective.Economic value added theory originated in developed countries, is suitable forthe perfect capital market, while China is a developing country capital market startedlate, the performance appraisal system is effective in the management of enterprises inChina, which will be studied in this paper.In2010, the SASAC started the implementation of economic valueadded assessment in the central enterprises, indicates that China’s centralenterprises entered the era of EVA management. Under this background, in China’scentral enterprises holdings listing Corporationas the research object, selects251listingCorporation as the research sample, time interval selection for2011-2013years, studythe use of economic increase the effectiveness of value assessment of enterpriseperformance, the use of earnings management and the residual income theory astheoretical support, to demonstrate that the central enterprises in the implementationof economic value added evaluation, from the effectiveness of these two aspects ofearnings management and the enterprise value appraisal inspection EVA. Throughempirical analysis, this paper obtained the distinct positive correlationbetween enterprise value and economic value added, indicating that EVA can beembodied in the value of the enterprise;however, the metric EVA, also can be the profitmanipulation and earnings management has positive correlation, explained that theenterprise uses the EVA appraisal exacerbated the company’s earnings managementbehavior. According to the empirical conclusion, targeted policy recommendations fromtwo aspects, one is how to improve the earnings management behavior of the centralenterprises to listing Corporation, the second is to gradually improve theEVA evaluation index system.