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2010•Xi'an Caijing Xueyuan xuebaoRequires access

Analysis of Listed Telecom Enterprises' Operating Performance in China Based on Economic Value Added(EVA)

Wu Hua

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Abstract

The traditional corporate performance assessment of accounting profit without deduction equity costs is not perfect.Because it can not truly reflect the company's profitability for shareholders.Index of economic value added(EVA) to assess enterprise performance can make up the deficiencies of traditional assessment.By analysis based on EVA of 76 telecom listed companies in China within three successive years,the essay shows the actual performance in almost half enterprisis unsatisfied,indicating the managers in these companies not only failed to produce wealth for shareholders,but hurt them.It is necessary for the listed telecom companies to take measures to control costs,reduce the idle assets,optimize capital structure,lower cost of capital,accelerate the turnover of assets and other measures to ensure the EVA for shareholders.

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What this paper is about

The traditional corporate performance assessment of accounting profit without deduction equity costs is not perfect.Because it can not truly reflect the company's profitability for shareholders.Index of economic value added(EVA) to assess enterprise performance can make up the deficiencies of traditional assessment.By analysis based on EVA of 76 telecom listed companies in China within three successive years,the essay shows the actual performance in almost half enterprisis unsatisfied,indicating the managers in these companies not only failed to produce wealth for shareholders,but hurt them.It is necessary for the listed telecom companies to take measures to control costs,reduce the idle assets,optimize capital structure,lower cost of capital,accelerate the turnover of assets and other measures to ensure the EVA for shareholders.

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Available abstract

The traditional corporate performance assessment of accounting profit without deduction equity costs is not perfect.Because it can not truly reflect the company's profitability for shareholders.Index of economic value added(EVA) to assess enterprise performance can make up the deficiencies of traditional assessment.By analysis based on EVA of 76 telecom listed companies in China within three successive years,the essay shows the actual performance in almost half enterprisis unsatisfied,indicating the managers in these companies not only failed to produce wealth for shareholders,but hurt them.It is necessary for the listed telecom companies to take measures to control costs,reduce the idle assets,optimize capital structure,lower cost of capital,accelerate the turnover of assets and other measures to ensure the EVA for shareholders.

Key concepts: Economic Value Added, Shareholder, Profitability index, Business, Profit (economics), Return on assets, Return on equity, Return on capital employed

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Analysis of Listed Telecom Enterprises' Operating Performance in China Based on Economic Value Added(EVA) — Research Paper | ScholarLens