Analysis on the Value Capacity of Listed Agricultural Companies

Economic Value Added(EVA) is an assessment for the value indicators,and compared with accounting profits,it takes all the costs of funds into account including the costs of debt and the opportunity costs of equity capital,which are the actual economic profits.It enables management and financial officers to concern more with whether the company's performance substantially improves than with the bare data in the accounting reports.The research selects proper listed agricultural companies as samples,analyzes the financial data in their annual reports,and calculates EVA in these companies from 2004-2006.It aims at the explanations of the function of EVA in an enterprise and the major factors affecting EVA.Among the explanations,are included what kind of effect capital costs produces on EVA,and what we should do to avoid this kind of problem in order to make an actual maximum profit in an enterprise.The empirical analysis shows that economic growth value can overcome the disadvantage of the traditional performance evaluation,and makes an objective and effective assessment on the value of capacity in an enterprise.