An Empirical Study On Measurement Of Enterprise’s Financial Performance From The Perspective Of Economic Value Added Momentum

Muddy Waters accused Hong Kong-listed Huishan Ruye of issuing false financial reports that caught widespread public concern once again.That revealed the complex difficulty of measuring financial performance.Academics and practitioners have also been working on ways to get closer to the financial performance of their businesses.State-owned Assets Supervision and Administration Commission(NAMA)has replaced the rate of return on net assets with economic value added(EVA)as an indicator of the financial performance of central because of the advantages of economic value added in measuring the financial performance of enterprises.However,it is difficult to compare the financial performance of enterprises horizontally and vertically.Therefore,economic value added momentum is a relative number and also evolves on the basis of economic value added on the basis of rich information,eliminating the scale effect and the industry effect.So this article chooses economic value added momentum to measure the financial performance of enterprises.In this paper,building A shares of construction enterprises in Shanghai and Shenzhen as the research object,using economic value added momentumas a bridge to measure the financial performance of enterprises.So that it can be related to the study economic value added momentum and China’s capital system is consistent with the relevant empirical evidence.Based on the economic background of our country,the paper combs the relevant research literature,introduces the present research status of China’s economic value added and economic value added momentum at the same time it sorts out the historyof the measurement of the financial performance of state-owned enterprises in our country.Especially in the demonstration stage,using descriptive statistics,principal component analysis and other methods to optimize the financial performance of the representative factors,and then use the economic value added momentum and economic value added as the research variables,regression structural equation.The study found that economic value-added momentum reflects the business of the financial performance level,the fluctuation of economic value added momentum is in line with the changing trend of financial performance;the economic value added momentum is more sensitive than economic value added at the level of the regression coefficient;economic value added momentum is in line with the incremental research that can be horizontal and vertical Compare corporate financial performance and provide more economic information.