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This paper analyzes if EVA Economic Value Addedevaluation system can reduce the corporations’ overinvestment phenomenon byusing the study sample of 204 listed SOEs state-owned corporations with thesample period from 2007 to 2012. Then according to Tobin’s Q value, we dividedall the 204 listed SOEs into two groups, high growth corporations and lowgrowth corporations, and observed if the implementation of EVA has differentinhibition effect on the listed SOEs of different growth. The results indicatedthat EVA can’t significantly reduce the listed SOEs’ overinvestment, but it hasdifferent inhibition effect on different growth corporations. The EVA cansignificantly reduce low growth listed SOEs’ overinvestment, which suggests theEVA evaluation system can improve low growth corporations’ investmentsituation.

KEYWORDS

EVA Economic Value Added, Corporation Growth, Overinvestment, SOEs State-Owned Corporations

Cite this paper

Wang, Y. and Wang, Y. 2016 Economic Value Added, Corporation Growth and Overinvestment—Based on State-Owned Corporations. Modern Economy, 7, 1640-1652. doi: 10.4236-me.2016.714144.





Autor: Ying Wang, Yaqi Wang

Fuente: http://www.scirp.org/



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