Research On The Application Of EVA In The Performance Evaluation Of China’s Real Estate Enterprises

The real estate industry is the key pillar industry of our national economy.It has a very strong impetus to the economic growth and the development of related industries in China.Therefore,the development of the industry has been paid more and more attention.Because the real estate industry has the characteristics of capital-intensive,it is inevitable to pay attention to profit,bias scale and equity financing and other issues,and the previous corporate performance evaluation method ignores the cost of equity capital,which led to can not truly reflect the real estate business level of performance.Accurate and effective evaluation of business performance can improve the company’s two major capabilities,that is management capacity and competitiveness.The performance evaluation index of accounting performance with accounting profit as the test standard ignores the influence of equity cost on firm performance,ignores the influence of the equity cost on the enterprise performance,and can not accurately reflect the real performance of the enterprise.Economic value added(EVA)is a measure of real economic value and requires managers to return capital costs to lenders and shareholders.EVA performance evaluation method as the current concept of cinema,it is different from the traditional performance evaluation model,the equity capital costs into account,can truly reflect the value created by the enterprise for the shareholders and their own value-added capabilities,The core competitiveness of enterprises to improve,reflecting a new type of corporate values.Therefore,the EVA performance evaluation method to the real estate business performance evaluation is a very valuable exploration,it can more objectively reflect the real estate business performance.The implementation of EVA will prove to be a more accurate way to assess the performance of a company.Which will from the perspective of the best interests of shareholders to encourage managers to make decisions to achieve the best interests of shareholders.Based on the analysis of the performance evaluation theory,this paper puts forward the EVA performance evaluation method,and further summarizes the EVA evaluation method by summarizing the research results at home and abroad.On the basis of the theoretical connection case,the comparison and case analysis The EVA performance evaluation index and the traditional financial indicators were compared and analyzed to find out the main reason for the existence of the gap,the use of EVA Group,EVA performance evaluation method produced after the use of EVA,Positive influence is expounded,and the experience of Vanke Group using EVA evaluation method is analyzed,so as to provide reference for other real estate enterprises.This article is more peculiar,for the real estate industry operators and shareholders and other stakeholders in the performance evaluation methods to promote the new concept,but also for the real estate business to enhance the performance of the new ways to learn.