An Empirical Research of Factors Affecting EVA of Telecom Operator

By taking 223 data from 14 famous telecom operators all of the world as sample, this research investigates the mechanism between factors (which reveals the characters of telecom operation industry) and Economic Value Added. The methodologies mainly used include Factor analysis, Correlation Analysis, and Structural equation modeling (SEM). Final result indicates that the factors affecting EVA of telecom operator mainly includes Profitability capacity, Management capacity, and Risk Resist capacity, which positively affect EVA. Scale and Growth speed are not significant in improving telecom operator's EVA. Result shows that managers of telecom operators should pay more attention to the quality and health of companies.