EVA as a Tool for Estimation of Management Eciency and Value Creation in Polish Telecom Sector

The paper presents results of empirical study on creation of added value in Polish telecom sector, based on Economic Value Added (EVA) indicator. First, an EVA analysis was performed for publicly traded telecom companies. Next, the e ectiveness of EVA itself in management of telecom companies was evaluated. A statistical analysis was made to investigate dependence between EVA and other indicators of company value, confirming that EVA sign and magnitude are in agreement with indicators based on data from financial books. Finally, the eff ectiveness of using EVA for prediction of market capitalization of telecom companies was investigated. Overall results do not give a clear picture and cannot allow to state that EVA is a better determinant of value of telecom company than financial indicators like Earnings Per Share (EPS).