EVA Dynamic Valuation Model Embedded in Surplus Governance: Based on the Empirical Research of Tencent Holdings and the Value Reconstruction of Internet Enterprises
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Keywords
EVA, earnings governance, TenCent holdings, enterprise valuation, Kw, governance premium; asset light companies
Abstract
This study investigates the EVA-based enterprise value assessment model, employing a combined approach of normative research and empirical analysis and quantitative and qualitative methods. The paper first establishes theoretical foundations through a literature review, followed by an in-depth case study of Tencent Holdings Limited. A triadic chain framework-”earnings governance-EVA-enterprise value”-is proposed, defining earnings governance as strategies to curb earnings management, thereby reducing capital costs and increasing economic profits. Research findings demonstrate that EVA provides a more objective measure of corporate value creation, offering a rigorous valuation benchmark after total capital costs are deducted. Tencent Holdings maintained positive EVA values from 2020--2024, consistently generating incremental wealth for shareholders, with projected future growth showing stable momentum. Additionally, EVA has multiple applications in corporate governance systems, driving attention to capital allocation efficiency and promoting long-term sustainable development. Notably, earnings governance significantly improves the valuation accuracy of EVA. Finally, integrating EVA with the BSC establishes a closed-loop management system for comprehensive corporate performance evaluation.
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