Evaluation Of The Performance Of Listed Companies On China's Telecom Industry Based On Eva

In recent years, a measure of business performance, slowly begins to stand in the perspective of investors to consider. Measure of corporate wealth for investors, is not just the pursuit of corporate profit. It is in this context the Stern Stewart made EVA. EVA is the meaning of economic value added, which measures the performance of enterprises, not only to consider the claims costs, but also to consider equity costs.It can compensate the shortcomings of traditional accounting profit targets. So it will more accurately reflect the listed companies to create wealth for shareholders.People have different views about EVA and traditional accounting profit targets,which one is better. Studies of some foreign scholars shown that EVA index is more accurately to reflect business performance than traditional accounting indicators. Chinese researchers have support and opposition.which one is better to reflect the business performance, the EVA or traditional accounting indicators? And Whether it is suitable for EVA target localization in China how?This article tries to answer the two issues. By selecting 76 of telecom listed companies, calculated three consecutive years of their EVA.It found that more than half of the sample companies'EVA are negative,the actual performance is unsatisfactory, indicating that the managers of these public enterprises are not to create wealth for shareholders, but damage shareholders wealth. First EVA and traditional accounting indicators are verfied by regression analysis to Explain degree for MVA, then verifies that EVA index level of traditional accounting index relatively incremental information,Finally find out why the EVA of telecom listed companies are low, we proposed by increasing the EVA of existing corporate assets, optimizing asset structure and improving return on capital and other measures to improve EVA, sincere creating EVA for shareholders.