Çam, Mustafa
May 2010
Journal of the Cukurova University Institute of Social Sciences;2010, Vol. 19 Issue 1, p398
Academic Journal
Besides the proliferation of management sense based upon value, the importance of correct measurement of business performance has increased. Because of the inefficiency of the traditional accounting based measurements, EVA approach used frequently in recent years. The competition conditions that run up in recent years provide the globalization of financial market, the variation of these operations conducted on the market and the increase of mobility in the capital; furthermore they increase the importance of using the operating assets effectively and enable the operations that aim to increase operating value to gain more importance. The change in the management goals requires the development of the means that aim to realize these goals, the incentive systems and the improvement of the criteria that will be used for measuring the degree of access to the main target. The efforts to raise operating value, searches for evaluating the operation performance more effectively and more objectively, and the improvement of performance measurements based on value can be evaluated within this scope. Economic Value Added and Market Value Added(MVA) take part in the performance measurements based upon value(EVA). The aim of this study is to explain a conceptual model of the Economic Value Added and Market Value Added(MVA) and how to apply these models.


Related Articles

  • An Interindustry Analysis of Economic Value Added as a Proxy for market Value Added. Kramer, Jonathan K.; Peters, Jonathan R. // Journal of Applied Finance;2001, Vol. 11 Issue 1, p41 

    Companies worldwide use the financial metric Economic Value Added (EVAR) to help then assess their financial performance. However researchers speculate that EVA is better suited to traditional manufacturing businesses than to knowledge-based businesses. This study empirically rests the relation...

  • The Effect of Internet Channels on the Market Value: AR and EVA Perspectives. Hung-Jen Tu; Jia-Jeng Hou // Contemporary Management Research;2011, Vol. 7 Issue 2, p89 

    The emergence of the Internet has forced a wealth of firms to explore a new form of channels of distribution, i.e., Internet channels. Nevertheless, empirical studies evaluating the values to firms from the adoption of Internet channels are limited. In order to fill in the literature gap, an...

  • EVA, MVA and CEO Compensation: Further Evidence. Baum, Charles L.; Sarver, Lee; Strickland, Thomas // American Business Review;Jun2004, Vol. 22 Issue 2, p82 

    The aim of this study is to analyze the relationship between a company's performance, measured by Economic Value Added (EVA) and/or Market Value Added (MVA), and the compensation of its chief executive officer. The study also considers whether any relationship between compensation and...

  • Performance Appraisal with Accounting and Value Based Measures. Nakhaei, Habibollah; Hamid, Nik Intan Norhan Bnti; Anuar, Melati Bnti Ahmad; Nakhaei, Karim // International Proceedings of Economics Development & Research;2012, Vol. 54, p123 

    The Purpose of this paper is to examine the relationship between economic value added (EVA), refined economic value added (REVA), and EVA Momentum named value-based measures or economic measures, and accounting measures (return on assets, return on equity, and return on sales) with share market...

  • iVita Adds to Functionality.  // Financial Executive;Jan/Feb2001, Vol. 17 Issue 1, p14 

    This article reports that Vita Corp. has produced an online program that provides companies with valuable information regarding their assets and how best to utilize them for profit. Its called iVita Commander 3.0 and it tracks market value, tax treatment and service history of assets. This is...

  • EVA Reporting in India: The Market Analogy. Goel, Sandeep // Singapore Management Review;2012 2nd Half, Vol. 34 Issue 2, p18 

    The article focuses on the importance of economic value added (EVA) in assessing the financial performance of a company. It highlights the EVA reporting practices of Indian companies under the Sensitivity Index in Bombay Stock Exchange (SENSEX) in line with their value creation for stockholders....

  • Economic Value Added (EVA) Approach in Russia. Concepts. Approaches. Instruments. SIRBU, Alexei // Review of International Comparative Management / Revista de Mana;May2012, Vol. 13 Issue 2, p305 

    The measure of the economic value has become a widely debated issue because, nowadays, more and more companies are focusing on creating value for their shareholders. Due to the fact that the traditional methods are not strongly related to the actual value created, the study focuses on finding...

  • HOW WE LEARNED ALL ABOUT EVA.  // Fortune;9/20/1993, Vol. 128 Issue 6, p4 

    Focuses on the concept of economic value added (EVA), a tool for evaluating the performance of any business operation, by focusing on its use of capital. Application of the concept by various companies and its impact on the performance of those companies; Information on companies which focused...

  • Don't Go Gaga Over Google. Colvin, Geoff // Fortune International (Europe);8/6/2007, Vol. 156 Issue 3, p14 

    The article warns readers against purchasing Google stock in hopes of creating a profit. The article states that Google has created more investor wealth in less time than any company in history, but warns that Google's stock price is not sustainable. The article states that the future of Google...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics