Eva in the Time of Covid in Ecuadorian Communication and Information Companies

Abstract

This article uses economic value added (EVA) to determine the performance of Ecuadorian communication and information companies in the year 2020. Being a COVID-19 pandemic year, the sector's performance has not been as expected. It has been studied which variables are influential in the EVA. The results determined that earnings before interest and taxes (BAIT) and net operating profit after tax (NOPAT) had a positive impact on EVA, while weighted average cost of capital (WACC) and return on invested capital (ROIC) were not significant for EVA performance. Company management should design actions that contribute to wealth generation taking into account the level of post-pandemic risk.