An Evaluation on the Performance of Listed Companies Based on EVA——Taking the Telecommunication Industry as an Example

With the development of our society,the limitation of accounting profits as one traditional method of evaluating the performance of enterprises is now appearing.Its main problem is that this evaluation method doesn't deduct the cost of stock share so as to make the calculated cost incomplete and unable to reflect the real profitability.In fact,EVA is the balance gotten from the after-tax net profit after the deduction of all capital costs,which is the real profit of enterprises.From the calculation of EVA of listed companies during the period of 2007-2009 in the electronic information industry,it can be seen that their performances are very poor,in other words,they do not create wealth for shareholders,but destroy their wealth.At last,some proposals are given so as to improve EVA of electronic industry.