A Study On The Relationship Between EVA And Stock Price Of The Company

The stock market has always been one of the core components of a country's capital market.Its performance affects the dynamics of the financial market and even the entire capital market.This is especially the case in China where a large population,financial market development is incomplete,and the total economic output is relatively large.For countries,the study of the stock market is even more important.Although China's stock market has experienced more than two decades of development,the various systems are still lacking compared with developed countries.Therefore,the stock market has always been an area worthy of exploration and in-depth research.This paper analyzes the basis of the traditional Chinese and Western financial performance evaluation theory,and points out that the key to evaluating the value of the company's stock is to establish a suitable performance evaluation index.The EVA index and traditional financial indicators such as earnings per share,return on net assets,total assets and net profits The ratio was compared and analyzed to indicate the superiority of the EVA indicator.Then,the EVA indicator was applied to the evaluation of the stock value in detail.Finally,the interest rate indicator was added to analyze the EVA per share and the stock price,as follows:The first part of the introduction is to describe the research background and the significance of the research.Through the development of the stock market and the influence of various factors on the long-term and short-term effects of the stock price,the influence of EVA on the stock price and the impact of interest rate on the stock price are introduced.The correlation between EVA and stock price is described.The status quo of research at home and abroad,the research status of the correlation between interest rate and stock price at home and abroad,and the research ideas and research framework of this article are introduced.The second part mainly introduces the theoretical basis of stock valuation,EVA and interest rate,and affects the stock price change.Factors,the theoretical basis,calculation method,implementation and application of EVA and share price,theoretical basis of interest rate and stock price;the third part is the research design and hypothesis put forward,put forward premise assumptions,research methods,sample selection,etc.Finally,put forward assumptions,assumptions EVA per share,earnings per share,return on net assets,return on total assets and stock prices are all positively correlated,and the fourth part is on correlation analysis,model construction,and regression analysis.Finally,it is an overview of this article,draws conclusions,and advises investors,countries,and business managers,and looks ahead.The specific conclusions of this paper include:(1)The economic value added EVA is a good indicator for assessing company value.(2)EVA has a positive correlation with the stock price of listed companies.(3)The return on net assets,the total net profit rate of assets and the earnings per share are positively related to the stock prices of listed companies.(4)EVA relative to earnings per share,its interpretation of each share price is higher,and per share earnings relative to return on net assets and total assets net profit rate,its interpretation of the stock price per share Higher than net assets return rate and total asset net profit rate explain the degree of each stock price.(5)Adding interest rate as a regulated variable,when the interest rate increases,the degree of interpretation of the stock price per share of EVA will be weakened.This is in line with the theory and is consistent with the state's use of interest rates to regulate the market,when the deposit interest rate increases.Investors will deposit the money put into the stock market to the bank to reduce the risk and guarantee the return.The stock price will fall due to the reduction of funds in the stock market;if the interest rate decreases,investors will send bank deposits into the stock market to increase the income.Compared with other countries,China's interest rates are more frequently controlled because the interest rate in China is controlled by the government rather than market regulation.Therefore,in the event of a bull market or a bear market,in order to avoid market confusion,the government uses interest rates to regulate the market.Through this analysis,we can also see that the government regulates through interest rates is effective.