Application of EVA in the Performance Evaluation of the State-Owned Enterprises: Case in Eastern Airlines Corporation Limited

Xuefeng DU, Yixiang TIAN, Gaoxun ZHANG

Abstract


With rapid improvement of China’s market economic operation mechanism, competition of enterprises is growing. Traditional evaluation indicators that measure performance of enterprise have become increasingly prominent defects. In this paper, we use the emerging evaluation method of enterprise performance―Economic Value Added (EVA) to study the performance of the state-owned listed companies. We make China Eastern Airlines Corporation Limited as an example to study the performance of state-owned enterprises. This study helps to regulate corporate financial management behavior, so that corporate investment decisions are consistent with the funding decisions.

Keywords


EVA; Performance; Financial; State-owned enterprise

Full Text:

PDF

References


Altendorfer, K., & Jodlbauer. H. (2011). Which utilization and service level lead to the maximum EVA? International Journal of Production Economics, 130(1), 16-26.

Bain, J. S. (1954). Economies of scale, concentration and the condition of entry in twenty manufacturing industries. American Economic Review, 44(1), 115-391.

Biddle, G. C., Bowen, R. M., & Wallace. J. S. (1997). Does EVA beat earnings? Evidence on associations with stock returns and firm values. Journal of Accounting and Economics, 12(1), 301-336.

Byme, O. (1996). EVA and market value. Journal of Applied Corporate Finance, 9(1), 116-125.

Cowling, K., & Waterston, M. (1976). Price cost margins and market structure. Economica, 43(171), 267-274.

Ding, Q. L. (2010). Profitability of SSE 50 sample companies frow the view of EVA. Third International Conference on Business Intelligence and Financial Engineering (pp.292-295).

Feng, G. F., & Jiang, W. L. (2001). The empirical study of mergers and acquisitions of listed companies. Economic Research, (1), 54-61.

Hou, K., & Robinson, D. T. (2006). Industry Concentration and Average Stock Returns. Journal of Finance, 61(4), 1927-1956.

Huang, H. (2007). Listed companies in China EVA performance analysis―REVA-based framework. Beijing: Foreign Economic and Trade University.

Kong, D. M., & Xiao, T. S. (2011). Monopoly influence the performance of listed companies in China do? Southern Economy, (1), 39-50.

Lehn, K., & Makhij, A. K. (1997). EVA and MVA: As performance measures and signals for strategic change. Strategy and Leadership, (6), 34-38.

Li Y. J., & Zhu, H. Q., & Zhang, M. S. (2006). Equity results and value creation―the home appliance industry, listed companies empirical analysis. Southwest University for Nationalities (Humanities and Social Science Edition), (10), 167 - 170.

Li, H., Zhang, D. M., Cao, X. Y., & Zhang, X. M. (2006). EVA empirical study of the effectiveness of performance indicators―Shanghai-listed companies based on 454 data for 2004. China Soft Science, (10), 150-157. (In Chinese).

Lu, G. X. (2012). Mergers and acquisitions of listed companies’ empirical research―based on EVA model audit. Economy Research, 27(2), 104-109.

O’Byrne, S. F. (1996). EVA and market value. Journal of Applied Corporate Finance, (5), 10-16.

Ricci, R. G., & Magni, C. A. (2006). Economic value added and systemic value added: Symmetry, additive coherence and differences in performance. Applied Financial Economics Letters, 2(3), 151-154.

Shen, W. T., & Ye, X. M. (2004). EVA affects the capital structure of listed companies empirical study. Economic Research, (1), 47-57.

Yang, L. K., & Li, Z. (2000). Management evaluation method based on EVA: Applications and limitations. Forecast, (4), 59-62.

Zaima, J. K. (2008). Portfolio investing with EVA. Journal of Portfolio Management, 34(3), 34-40.

Zhu, X. W., & Song, Y. (2001). Ownership structure and corporate value. Economic Research, (12), 66-72.




DOI: http://dx.doi.org/10.3968/j.mse.1913035X20130703.3569

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures