TITLE

Economic Value Added (EVA): Its Uses and Limitations

AUTHOR(S)
Brewer, Peter C.; Chandra, Gyan
PUB. DATE
March 1999
SOURCE
SAM Advanced Management Journal (07497075);Spring99, Vol. 64 Issue 2, p4
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Focuses on the uses and limitations of economic value added (EVA) as a method of performance measurement. Definition and formula of EVA; Advantages and disadvantages of EVA; Information on return on investment; How EVA should be used to evaluate employee performance.
ACCESSION #
2624909

 

Related Articles

  • In Search of the "Lost Capital". A Theory for Valuation, Investment Decisions, Performance Measurement. Magni, Carlo Alberto // Frontiers in Finance & Economics;Apr2012, Vol. 9 Issue 1, p87 

    This paper presents a theoretical framework for valuation, investment decisions, and performance measurement based on a nonstandard theory of residual income. It is derived from the notion of "unrecovered" capital, which is here named "lost" capital because it represents the capital foregone by...

  • Significance of Economic Value Added in Shareholder Value Creation Process. Zakic, Vladimir; Nenad, Vunjak; Besic, Carisa; Simic, Jelena // TTEM- Technics Technologies Education Management;2012, Vol. 7 Issue 1, p180 

    Purpose of this article is to determine role of Economic Value Added - EVA, as most recognized and applied modern performance financial measurement, in Shareholder Value Creation. Shareholder value is created when the net return on assets held by the business exceeds the return required by those...

  • The relationship between evaluation criteria and economic value added among accepted companies in Tehran Stock Exchange. Fard, Ayoub Mahdian; Derakhshani, Omid; Shafei, Madjid; Amin, Vahid // European Online Journal of Natural & Social Sciences;2013, Vol. 2 Issue 1, p86 

    The economic value added (EVA) can be regarded as one of the new criteria indicating the real performance of any company and an alternative to traditional criteria based on accounting profits as earnings per share (EPS), rate of return on equity (ROE), price to earnings per share ratio (P/E) and...

  • Returns for Domestic Nonfinancial Business. Hodge, Andrew W.; Corea, Robert J.; Green, James M.; Retus, Bonnie A. // Survey of Current Business;Jun2011, Vol. 91 Issue 6, p24 

    The article presents data from the U.S. Bureau of Economic Analysis (BEA) concerning the increasing profitability of domestic nonfinancial corporations in 2010. The report shows the full effect of the recession that started in December 2007 and how the country attained a full recovery in 2010....

  • EVA Reconsidered for the Greek Capital Market. Mandilas, Athanasios; Floropoulos, Iordanis; Pipiliagkopoulos, Michalis; Angelakis, George // European Research Studies;2009, Vol. 12 Issue 2, p37 

    The present study examines the explanatory power of one value based performance measure (Economic Value Added) and three other traditional accounting measures (Earnings Per Share, Return On Investment, Return On Equity) in explaining stock market returns in the framework of Athens Stock Exchange...

  • Modified TVA-based Performance Evaluation. Mohanty, Pitabas // IIMB Management Review (Indian Institute of Management Bangalore;Sep2006, Vol. 18 Issue 3, p265 

    The article discusses modified true value added (TVA)-based performance evaluation. The prevention of over- and under-investment can be assisted by the modified TVA compensation measure. It is said that economic value added-based compensation system is both a cash flow based measure and is...

  • The Relationship between EVA and Stock Returns. Shubita, Mohammad Fawzi // International Research Journal of Finance & Economics;2010, Issue 59, p35 

    This study aims to achieve the following objectives: Providing independent empirical evidence on the information content of EVA, residual income, and accounting earnings measures; increasing interest in EVA in the business press, increasing use of EVA by firms and among academics, and potential...

  • Commonalities Between Added Value Ratios and Traditional Return on Capital Employed. Kwong, M. F. C.; Munro, J. W.; Peasnell, K. V. // Accounting & Business Research (Wolters Kluwer UK);Winter95, Vol. 26 Issue 1, p51 

    This paper provides an empirical comparison between two versions of a new accounting ratio devised by Kay and Davis (1990a, 1990b) and Kay (1993) and the traditional capital employed (ROCE) ratio. The new measures, 'added value on inputs employed (AVIE) and 'added value on net output' (AVNO),...

  • Fatiga por el cumplimiento de SEPA.  // Estrategia Financiera;2008, Vol. 23 Issue 254, p6 

    No abstract available.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics