Financial Efficiency of Electric Power Listed Company Based on EVA Model

Abstract

EVA is the performance measurement indicator as the center of creating the shareholder value. With calculation of annual fund utilization efficiency of the electric power listed company by EVA model, it is approved that the blindness of electric power enterprises in choosing equity financing has reduced fund utilization efficiency. Considering the high rate of return on assets as well as the fact that the debt cost is lower than stock equity cost, debt financing model is more applicable than equity financing for electric power listed companies.