Discussion on the Performance Evaluation of GEM Listed Companies based on the Method of EVA

Compared to the main board market,it has been a short time since GEM has been established,and there has not been an effective performance evaluation system.Among various performance evaluation methods,EVA not only lays its focus on the net profit after taxation of enterprises,but also takes the capital cost into account,balancing the net wealth value created by the innovative medium-and-small sized enterprises in future,in this paper,with the adjusted EVA method,we make an evaluation on the operation performance of GEM listed companies,and it shows that although the net profit level of EM listed companies is higher than their EVA in total,the economic added value of a lot of enterprises is negative,it turns out that in the current level,part of GEM listed companies cannot create wealth for the investors.In addition,there is not a positive proportional relationship between profit level of GEM listed companies and its economic added value.The conclusions will provide a valuable reference basis for the investors,companies,government and banks to evaluate the operation performance.