Research On Financial Performance Evaluation Of PL Real Estate Companies Based On EVA

Since the 2008 world financial crisis,macro-control policies such as reducing deposit and loan interest rates and accelerating lending have stimulated the real estate industry,causing a new round of development and investment enthusiasm.In order to strictly prevent the emergence of real estate bubbles,since 2020,the state has successively introduced policies such as tightening loan and purchase restrictions,limiting prices and sales and upgrading,and increasing the proportion of priority just-needed housing.The real estate market has seen a surge in the trend of promoting stable and healthy development due to the "14th Five-Year Plan" which seeks to construct a new model of "internal circulation + dual circulation" economic growth.At present,the overall tightening of real estate tone has been maintained,and macro-policy regulation has entered a neutral and tight stage from marginal relaxation.In this context,real estate enterprises not only need to reposition their strategic goals,but also adjust their business objectives according to the trend of policies,and find breakthroughs to adapt to macroeconomic development and industry trends.The traditional performance evaluation system,which is still employed by the majority of real estate businesses,is not a reliable tool for assessing financial performance.With the company’s growth and the intensifying market forces,the data from such evaluations may not be precise enough for managers to adjust their objectives.A comprehensive evaluation of the enterprise’s business activities,promotion of its good development,and enhancement of its competitiveness can all be facilitated by EVA(Economic Value Added),a new performance evaluation method.This method can effectively reflect the profitability of the enterprise during its operation.This paper,taking the real estate industry as its research object,amalgamates the characteristics of the industry,national regulations,and the company’s current condition to optimize the PL real estate financial performance evaluation system,based on EVA indicators,by examining pertinent literature and materials.This paper’s research reveals that the EVA index is incorporated into the financial performance assessment of PL firms,and certain indicators are chosen for comparison and analysis with the EVA amount of PL firms from 2019 to 2021.Evidently,EVA indicators are more precise in gauging the value creation capability of PL companies,and the evaluation results are more impartial and more beneficial for decision makers.In the implementation of promotion measures,on the one hand,EVA indicators can be combined with traditional indicators to conduct comprehensive and multi-level evaluation and analysis of the company.At the same time,through the implementation and promotion of the EVA concept,widely publicize the significance and operation mechanism of the implementation of the EVA concept,and gradually guide the majority of employees to recognize the necessity,feasibility and importance of introducing EVA for financial performance evaluation.In addition,EVA can also be introduced into the new performance appraisal system,and EVA indicators can be used as a reference index to determine the management’s performance-based pay income and enhance the effectiveness of incentives.Through these optimization measures,it can better support the financial performance evaluation of PL companies,so that PL companies’ business performance can be better developed in the future.