Study of factors influencing telecom operator´s economic value added (EVA)

Based on data from 14 famous telecom operators, this study investigates factors influencing telecom operator´s economic value added (EVA), thus reveal the mechanism and relationships between telecom operators´ various capabilities and EVA. Factor analysis and Structural equation modeling (SEM) are used as the main analysis tools. Results show that Profitability capacity, Management capacity, and Risk Resist capacity are the three most important factors, and all of them positive affect EVA of telecom operators. Result also find Scale and Growth speed are not significant in improving telecom operator´s EVA, and indicate managers of telecom operators should pay more attention to the quality and health of companies.