Study on Application of EVA in Performance Evaluation of Private Listed Companies

With the rapid development of China's private economy, performance evaluation of private listed companies have been closely-watched, so it's important that the choice of evaluation criteria related to the economic interests of many stakeholders. We think the economic value added (EVA) is a new method for evaluation of corporate performance through literature review. Then according to importance principle, we detail the process of EVA's calculation. Finally, we use private companies listed on Shanghai and Shenzhen as a sample, and find that EVA evaluation index associate with the business performance is better than the traditional financial index through empirical methods of research, because it is better to reflect the true value of corporate creativity.