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The research and development phase is a crucial initial step in any process leading to innovation, and it aligns with the long-term vision of public and private sector strategies. The research questions in this study are as follows: (1) To determine the resulting interrelationship between R&D investments and GDP using regression analysis; (2) To investigate the amount of economic value added (EVA) that Georgia must create with the increase of R&D investments in a certain period in order to move from the group of countries with a BB sovereign credit rating to the group of countries with a BBB-investment credit rating. World Bank data from 2014-2022 was used. Using regression analysis, the impact of R&D investments (by increasing the share of artificial intelligence in R&D to 30-35%) on the country's GDP was determined. The regression analysis between R&D and GDP generated the following results: (1) the regression coefficient is 7.02502%, indicating that a 10% increase in R&D will result in a 0.70% increase in GDP; (2) the coefficient of determination is 81.1%, which demonstrates that 81.1% of the change in GDP is explained by the change in R&D; (3) the correlation coefficient is 90.1%, indicating a strong positive relationship; (4) the P-value is 0.03492, which suggests that the relationship between these two variables is significant. The calculation of a country's EVA (as a powerful tool that evaluates a country's economic growth and development) incorporates three key factors: the country's total wealth, net operating profit after tax and the Central Bank rate. The EVA model of Georgia was calculated and then analysed in order to determine the additional value that Georgia would need to generate in order to be included in the BBB-investment credit rating group. In order to determine this, the economic indicators of the countries on the BBB scale (Greece, Hungary, India, Kazakhstan) were analysed, and their average weighted index was calculated. This index is characteristically relevant according to the criteria set out by S&P, Fitch, and Moody's. The following economic indicators were considered: nominal GDP, GDP per capita, and real GDP growth. External indicators included: current account balance/GDP, gross external financing needs/CARs plus usable reserves. Fiscal indicators were: general government balance/GDP, debt/GDP, and net debt/GDP. Finally, the consumer prices index growth was considered as a monetary indicator. According to EVA model calculations, in order to achieve Georgia's BBB credit rating in the next 9 years, investments of $61.7 billion are required. Using EVA and other economic indicators in the decision-making process will contribute to a more in-depth analysis of the current economic processes in the country and increase efficiency.

Copyright of Revista de Ciencias Sociales (13159518) is the property of Revista de Ciencias Sociales de la Universidad del Zulia Venezuela and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The main objective of the paper is to assess the relationship between firms' financial resilience and firms' strategic sustainable development vulnerabilities, in the context of implications of the COVID-19 pandemic on firms' business environment. Background: The last decade has emphasized an increase in business models' uncertainty and risk exposure. The COVID-19 pandemic has highlighted the awareness in this direction, especially in a changing context, that looks more and more for corporate sector operations' orientation towards sustainable development. The question we would address in this paper is how the nexus between corporate sustainability performance and corporate financial resilience is affected by management decision through process improvements, product quality assurance, or managers' preference to improve corporate financials by earnings management practice instead, especially in the context of specific corporate financial risk management. Methods: The data are extracted from the Refinitiv database. The sample is limited to 275 European Union listed firms, selected based on data availability. The empirical analysis consists of an OLS multiple regression. For robustness purposes, a quantile regression model is estimated as well. Results: The approach considers implications of the pandemic on firms' business environment and earnings management accounting based policies and strategies as well. The result suggests that alignment to sustainability frameworks lead to the deterioration of firms' financial resilience. Similar results show the negative impact of firms' financial vulnerability (credit default risk) on firms' financial resilience. Instead, the risk of bankruptcy, firms' liquidity, or high product quality and business process improvement determine the positive impact on firms' financial resilience. Conclusions: The study highlights several insights both for management and policy makers. First, the results underline the relevance of management's choice for earnings management on ensuring firms' financial resilience, which ask for better corporate governance and high-quality and effective institutional regulatory and enforcement mechanisms. Second, the paper brings evidence on the impact of the COVID-19 pandemic on firms' financial sustainable development. Third, the study emphasizes the importance of the efforts of corporate process improvements and high-quality products on generating value-add, by looking on the relevance of those drivers on the level of corporate economic value-add, a measure that limits the impact of discretionary management accrual-based accounting choices on our discussion. [ABSTRACT FROM AUTHOR]

This study assessed the accounting-based variables and value-based management (VBM) variables that jointly affect firm value and performance. The study applied the causality test and variance decomposition to determine the variability of the variables, and further empirically employed fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) techniques to justify the results. Data covering 356 industries were purposively sampled to arrive at 61 companies spanning 2011–2020. Overall, the causality test found no relationship between economic value added and market value added but only found unidirectional causality from shareholder returns to MVA, EVA to shareholder returns, ROA to MVA, ROE to MVA, EVA to MVA, MVA to EVA, ROE to ROA, EVA to ROA, and EVA to ROE. A very strong bidirectional causality relationship was found between return on asset and shareholder return as a measure of company performance. Further results from the forecast error of the variance decomposition showed that shareholder returns are explained only by its own shock, contributing 45.38 percent in the long run, while the remaining variables, namely market value added, return on asset, return on equity, and economic value added, contribute about 35.96%, 14.06%, 4.08%, and 0.51%, respectively, to predicting the future values of shareholder return. This confirms the relationships between the variables from the short run to the long run. Additionally, results from the FMOL and DOL revealed that all accounting variables and VBM are good approaches for evaluating company performance as the empirical result from ROA, ROE, and EVA revealed positive and significant relationships. This confirms that a combination of both variables would produce a better evaluation as the accounting variables and VBM variables jointly relate to shareholder returns. This study serves as a guide to companies' management and boards of directors in having better ways to evaluate company performance. Consequently, it is recommended that managers select combinations of accounting and VBM variables that suit their operations and jointly apply them in the performance evaluation of the company. This will be useful in providing both the relative and incremental performance information needed for diverse decision-making. [ABSTRACT FROM AUTHOR]

Traditional financial performance measures should be extended to provide additional information to stakeholders. One such extension is the economic value added (EVA). It shows residual profit above the cost of financing, both creditors and equity financing. This paper elaborates on the impact of selected financial ratios on EVA to total assets and EVA to capital employed using the 20-year aggregated data of non-financial business entities operating in Croatia. It answers the research question of which of the selected financial ratios impacts the above-mentioned EVA-based ratios. Applying dynamic panel data modeling using the generalized method of moments technique resulted in the derivation of two models. The human capital efficiency ratio was statistically significant in both models, positively affecting EVA/total assets and EVA/capital employed. In contrast, the debt ratio and net profit margin were significant only in the second model, where EVA/capital employed was a dependent variable. The research results indicate that the debt ratio affects EVA/capital employed negatively while the net profit margin has a positive effect, confirming the existing research. Total liabilities/earnings before interest, taxes, depreciation and amortization, and total asset turnover were not found to be significant in either of the two models. [ABSTRACT FROM AUTHOR]

The research and development phase is a crucial initial step in any process leading to innovation, and it aligns with the long-term vision of public and private sector strategies. The research questions in this study are as follows: (1) To determine the resulting interrelationship between R&D investments and GDP using regression analysis; (2) To investigate the amount of economic value added (EVA) that Georgia must create with the increase of R&D investments in a certain period in order to move from the group of countries with a BB sovereign credit rating to the group of countries with a BBB-investment credit rating. World Bank data from 2014-2022 was used. Using regression analysis, the impact of R&D investments (by increasing the share of artificial intelligence in R&D to 30-35%) on the country's GDP was determined. The regression analysis between R&D and GDP generated the following results: (1) the regression coefficient is 7.02502%, indicating that a 10% increase in R&D will result in a 0.70% increase in GDP; (2) the coefficient of determination is 81.1%, which demonstrates that 81.1% of the change in GDP is explained by the change in R&D ; (3) the correlation coefficient is 90.1%, indicating a strong positive relationship; (4) the P-value is 0.03492, which suggests that the relationship between these two variables is significant. The calculation of a country's EVA (as a powerful tool that evaluates a country's economic growth and development) incorporates three key factors: the country's total wealth, net operating profit after tax and the Central Bank rate. The EVA model of Georgia was calculated and then analysed in order to determine the additional value that Georgia would need to generate in order to be included in the BBB-investment credit rating group. In order to determine this, the economic indicators of the countries on the BBB scale (Greece, Hungary, India, Kazakhstan) were analysed, and their average weighted index was calculated. This index is characteristically relevant according to the criteria set out by S&P, Fitch, and Moody's. The following economic indicators were considered: nominal GDP, GDP per capita, and real GDP growth. External indicators included: current account balance/GDP, gross external financing needs/CARs plus usable reserves. Fiscal indicators were: general government balance/GDP, debt/GDP, and net debt/GDP. Finally, the consumer prices index growth was considered as a monetary indicator. According to EVA model calculations, in order to achieve Georgia's BBB credit rating in the next 9 years, investments of $61.7 billion are required. Using EVA and other economic indicators in the decision-making process will contribute to a more in-depth analysis of the current economic processes in the country and increase efficiency. [ABSTRACT FROM AUTHOR]

Attempts to measure the economic value contributed to the company by the capital structure present various methodologies that bring together large working teams, whose proposals focus their analysis from the characteristics of the manager to models adjusted to their life cycle. This research addresses this problem by measuring the contribution to economic value through the capital structure, using the Economic Value Added (EVA) method as a basis, and then modifying its analysis variables to quantify the economic value added from debt and equity, which in this work is called Modified Added Economic Value (MEVA). A methodology is proposed to estimate the incremental economic value per monetary unit of financial debt acquired. The main results show that MEVA captures the disaggregated performance of debt and equity management. Moreover, to the extent that profit tax increases, debt is more desirable than equity issuance.

Under the requirements of carbon peaking and carbon neutrality goals, the value added of Chinese industrial enterprises may face pressure, especially for those with high carbon emissions, where the constraints are more apparent. It is urgent to explore a long-term development path for enterprises to achieve value addition while managing environmental responsibilities effectively. This study conducts an empirical analysis using the unbalanced panel data of 3137 Chinese A-share listed industrial enterprises from 2008 to 2023. It constructs a comprehensive index covering 7 dimensions and 22 indicators to evaluate corporate environmental management capabilities based on three aspects: government policy requirements, corporate management needs, and public social demands. In this study, a dynamic panel differential generalised moment estimation model (dif-GMM) is established to investigate the impact of environmental management capabilities on economic value added. By categorising industrial enterprises into heavily polluting industries and non-heavily polluting industries, the study further investigates the differences in impact. The results show a significant positive correlation between environmental management capabilities and the amount of economic value added, with a stronger correlation for enterprises in heavily polluting industries. The article provides suggestions from government, enterprises, and societal perspectives to promote a virtuous cycle of enhanced environmental management capabilities and value addition, jointly advancing carbon peaking and carbon neutrality goals. [ABSTRACT FROM AUTHOR]

The study investigates the impact of a post-merger integration capability (hereinafter PMIC) on shareholder value added (hereinafter SVA) of acquirer banks listed on the Ghana Stock Exchange (hereinafter GSE). The study used panel data techniques of random effects, fixed effects estimation and generalised method of moments (GMM) to purge time-invariant unobserved firm specific effects and to mitigate potential endogeneity problems. The study indicated that PMIC (proxied by strategic, communication, coordination and network, marketing, technology, knowledge management, human capital, intellectual capital, managerial and information technology capabilities) have positive and significant influence on SVA (proxied by Economic Value Added, Market Value Added and Cash Value Added). The results further show that bank size, bank age, bank growth and leverage moderate the relationship between PMIC and SVA. The study recommends that banks analyse their organisational capabilities and firm size prior to any business expansion decision (organic or inorganic). [ABSTRACT FROM AUTHOR]

Copyright of Religación: Revista de Ciencias Sociales y Humanidades is the property of Religacion: Revista de Ciencias Sociales y Humanidades and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The prerequisite for businesses’ success, competitiveness, and non-bankruptcy is their performance. An effective performance measurement system is a suitable tool for measuring and improving business performance. The development in performance measures moved from financial measures focused on company profitability to measurement systems combining different methods, approaches, and tools. The paper aims to identify key performance indicators for Slovak heating companies based on the developed integrated performance measurement system. The analysis sampled 292 Slovak companies within SK NACE 35 (heating industry). The performance measurement system was built on balanced scorecard principles, while the least absolute shrinkage and selection operator (Lasso regression) method was used to select financial indicators. Based on the combination of the above methods, a performance measurement system framework for the analyzed sample of businesses was created. The results show that when managing performance, the analyzed businesses should focus on the following financial performance indicators: Receivables turnover ratio, Return on equity, Return on costs, Total debt to total assets, Material intensity, Labor to revenue ratio, Netto cash flow to assets, Net working capital to total assets, and Short-term liabilities to assets. When building performance measurement system based on balanced scorecard principles, financial indicators were supplemented by non-financial ones. In addition to the original balanced scorecard principles, the performance measurement system was extended by environmental constituents. Also, the paper’s deliverable combines Lasso regression and balanced scorecard principles in order to select key performance indices. AcknowledgmentThis paper is prepared within the grant scheme VEGA No. 1/0741/20 (the application of variant methods in detecting symptoms of possible bankruptcy of Slovak businesses in order to ensure their sustainable development).

Within the real estate sector, the concept of sustainability has traditionally been associated with green building initiatives. This study broadens the scope by examining environmental disclosure practices across a spectrum of stakeholders, including developers, financiers, suppliers, and advisors, within the real estate sectors of Australia and India. Utilizing the Global Reporting Initiative (GRI) standards to evaluate environmental reporting, this research scrutinizes publicly disclosed company data to assess the sector's engagement with sustainability. The findings reveal a pronounced focus on emissions and energy, with less attention to other critical factors like biodiversity, materials, and supplier environmental assessment. This selective disclosure suggests a need for a more holistic approach to sustainability reporting. This study also investigates the influence of regional nuances and the integration of international reporting standards, shedding light on the varied practices of sustainability reporting within the industry. Furthermore, this paper examines the relationship between environmental disclosures and financial performance, measured by the economic value added (EVA). It was observed that environmental disclosures do not show a significant correlation with EVA for companies in either country, indicating that current reporting practices do not directly impact financial outcomes as captured by this metric. These findings offer actionable insights for enhancing reporting practices, encouraging a collective approach to address the environmental impacts of real estate, and contributing to the discourse on responsible environmental stewardship. [ABSTRACT FROM AUTHOR]

The study intends to find empirical evidence that shows the effect of economic value added, leverage, and liquidity on stock prices in the manufacturing industry registered on the Indonesia Stock Exchange in the period 2018 to 2020. The study was conducted by taking 71 samples using the technique of purposive sampling. From the results of the partial t-statistical test, it was proved that leverage (DAR) and liquidity (CR) had positive and significant influences towards stock prices, while economic-value-added (EVA) had no significant influence towards stock prices.

One of the most popular methods to measure the performance and success of the company has become the economic value added. EVA supports strategic planning, and management can measure and evaluate performance at the division level. Through it, you can find results that are important not only for the company's management and the owners but also for the company's shareholders. For businesses in the market, it is essential to measure and evaluate the performance of the business, as they are exposed to the risk of competition and, of course, pressure from the environment. However, many companies are underestimating this measurement due to time-consuming and evaluating business performance based on financial statements. Therefore, they can only assess traditional indicators, often insufficient to determine the company's performance. The paper aims to inform readers about all necessary information related to the EVA method and draw the calculation on a specific example. We have determined the application of the method to a particular company as our primary goal. Therefore, we can get information on the performance of the selected company. The applied values and data are further applied and interpreted, which results in how the company manages its assets and how it can continue to improve its performance.

This paper will discuss an important target variable in value-based management: the Economic Value Added (or EVA). EVA is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. EVA can also be referred to as economic profit, as it attempts to capture the true economic profit of a company. This measure was devised by management consulting firm Stern Value Management, originally incorporated as Stern Stewart & Co. This research will also discuss adjustments and different types of assumptions that are necessary for the calculation as well as how to use them properly to obtain an interpretable result. Paper will explain the formula and which conversions should be considered. It remains to be noted that the EVA concept only leads to small progress from a scientific point of view, but that the clever marketing by Stern & Stewart has initiated a renaissance of the underlying residual profit concept. The paper provides practitioners and academics with a good overview of the demonstrable added value of EVA controlling and, in contrast, also illustrates the weaknesses of the calculation model or the inaccuracy due to interpretation variables, which overall limit the value of EVA as a management key performance indicator. The research includes comprehensive and substantial discussion in the scientific literature on EVA and its interpretation.

In this paper, starting from the "holistic" approach of the European Banking Authority (EBA) which reinforces the relevance of antimoney laundering in the prudential assessment of banks, a conceptual scheme is proposed for the calculation of the Economic Value Added of banking products showing how, in the face of various activities required for AML purposes (from onboarding to alert management to constant monitoring), the economic convenience of a relationship can be determined ex ante, at least for each product. The results confirm that for the same creditworthiness and cost of capital, the AML variable strongly affects the economic convenience of the individual products. Considering the partially inelastic nature of AML costs, the size of the operation is equally fundamental in determining whether to initiate relationships with certain types of customers.

The global market's sustainability demand for coffee as a result of environmental concerns has influenced coffee producers to practice green coffee production. The efforts to improve the environmental performance of coffee production should also consider the other sustainability aspects: energy and economics. Using a green fertilizer from agricultural biomass can lower carbon dioxide (CO2) emissions since the cultivation process, which is directly impacted by fertilizer use, has been identified as an environmental damage hotspot for coffee production. This study aims to determine the impact of coffee pulp biomass utilization on coffee production in terms of energy savings, CO2 emission reduction, and economic value added. The methodologies used were environmental Life Cycle Assessment, energy requirement analysis, life cycle costing, and eco-efficiency analysis. The study findings showed that using coffee pulp biomass in coffee cultivation impacted the energy savings, environmental damage reduction, and increased economic value added. Applying coffee pulp biomass can potentially reduce 39–87% of cumulative energy demand, 49.69–72% of CO2 emissions, and 6–26% of the economic value-added increase. Moreover, coffee pulp utilization as a fertilizer is recommended to be applied broadly to promote sustainable coffee production according to its beneficial impact. This study provided that scientific information farmers need to apply green fertilizers in coffee production. [ABSTRACT FROM AUTHOR]

With increasing criticism on measuring executive performance based primarily on Total Shareholder Return (TSR), some academics and practitioners have revived discussions on using Economic Value Added (EVA) as an alternative. But if EVA failed to gain traction over the past two decades, is there any new evidence for it or different approaches to better implement it in corporate settings? In this study, we start by confirming EVA‐related metrics' significant positive relationships with long‐term TSR in the Australian market. Our empirical findings also address EVA's major drawback – too much complexity arising from accounting adjustments. Our results suggest that accounting adjustments are generally not necessary, and efforts should be re‐directed to designing direct and intuitive plan mechanisms. In addition, we develop a pseudo environment to illustrate EVA's managerial benefits and potential to cultivate sustainable growth. To study this influence, we leverage capital‐based simulation techniques and mimic executive decision making under different performance measurement conditions, which was typically only discussed in a qualitative or theoretical sense. We find that EVA‐related metrics naturally induce long‐term, strategic and sustainable decision making without limiting executives to overly focus on short‐term profitability. This simulation approach not only provides quantitative evidence, but also gives practitioners in different market environments an expandable and scalable pseudo framework to test the effect of different incentive plans and inform performance target setting, a useful but often overlooked feature in, for instance, the Australian market, where data is relatively scarce. [ABSTRACT FROM AUTHOR]

This article proposes a methodology to calculate the sustainable added value of the processes (SVA) that form a supply chain (CS), through a comprehensive indicator. The methodology consists of six steps and uses as methods the Life Cycle Analysis and the methods of Diakoulaki and Saaty, based on multiple criteria. When applied to a CS of electromechanical products, it was possible to obtain the SVA of each process and with it the value that each one contributes to the economic and environmental dimensions of sustainability. These results demonstrate the novelty and feasibility of applying the developed methodology and its differences with other existing ones in the specialized literature. [ABSTRACT FROM AUTHOR]

Copyright of Revista Facultad de Ciencias Economicas: Investigacion y Reflexion is the property of Revista Facultad de Ciencias Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this article is to examine the academic literature about the function, structure, calculation, and weaknesses of economic value added (EVA). EVA has been used as a measure of economic profit and captures the inadequacies of using traditional rates of return. In addition, this article tackles the main residual earnings (RI) modifications used to calculate EVA. A keyword search for publications was conducted in early 2022. This study couples an inferential analysis with descriptive analyses of the existing research. The articles were sorted into different clusters based on bibliographic coupling analysis. This study identifies the main areas and current dynamics of EVA research while evaluating the quality and impact of the scientific output. Three broad themes emerged from the analysis of the cluster related to the use and application of EVA: residual income and valuation, financial performance, and performance management. In doing so, we hope to enhance the understanding and contributions of EVA research to advance its theory and practice. [ABSTRACT FROM AUTHOR]

One of the most popular methods to measure the performance and success of the company has become the economic value added. EVA supports strategic planning, and management can measure and evaluate performance at the division level. Through it, you can find results that are important not only for the company's management and the owners but also for the company's shareholders. For businesses in the market, it is essential to measure and evaluate the performance of the business, as they are exposed to the risk of competition and, of course, pressure from the environment. However, many companies are underestimating this measurement due to time-consuming and evaluating business performance based on financial statements. Therefore, they can only assess traditional indicators, often insufficient to determine the company's performance. The paper aims to inform readers about all necessary information related to the EVA method and draw the calculation on a specific example. We have determined the application of the method to a particular company as our primary goal. Therefore, we can get information on the performance of the selected company. The applied values and data are further applied and interpreted, which results in how the company manages its assets and how it can continue to improve its performance. [ABSTRACT FROM AUTHOR]

This study aims to investigate the impact of the share buyback process and its motives on financial performance from an accounting and economic perspective. The study sample consisted of 66 firms listed on the Egyptian Stock Exchange from 2009 to 2020 and employed the OLS regression analysis. The results show a positive effect of share buybacks on financial performance, measured by the added economic value (EVA) and the return on equity (ROE). In contrast, the results show an insignificant effect of share buybacks on the return on assets (ROA). The study found that management’s motives to buy back shares affect a company’s financial performance. The study also found that management’s motive to achieve a cash surplus improves the company’s financial performance. The study also found that the company’s management motive to increase earnings per share is one of the most important motives for the company to buy back shares, which also improves the company’s financial performance. The study also showed that the economic value added (EVA) is one of the most important measures of financial performance, in which the repurchase of shares had the most significant impact in improving it over the return on assets or the return on equity. However, the study did not find evidence that the firms repurchase of shares out of increased financial leverage affects the financial performance. Moreover, the study found that increasing earnings per share is the most crucial motive for sharing buybacks in the Egyptian market. AcknowledgmentsI thank Jeddah International College for funding this research and continuous support from the Dean, Dr. Tariq Hamdi, and the general manager, Mr. Yazid Al Tunisi.I thank Professor Dr. Mohamed Tahoun, Professor of Financial Accounting at Alexandria University, for reviewing this research before sending it to the journal.

Introduction: The existence of different groups of stakeholders and the commitment of companies to their interests has highlighted the role of corporate social responsibility in today's world. Corporate social responsibility is the company's commitment to maximize long-term economic, social and environmental well-being through its performance, policies and resources. It is a valuable and irreplaceable resource that has changed the paradigm of organizational performance. Research has shown that companies' performance is influenced by corporate social responsibility. Due to the effect of different factors on the relationship between corporate social responsibility and company performance, in various studies have aimed at the moderating role of different variables in this relationship. One of the effective variables is business strategy because it represents a unique and fundamental element of a company's identity. Thus, business strategy can potentially affect the relationship between corporate social responsibility and corporate performance.Methodology: In terms of purpose, the present study is an applied type. From the point of view of data collection, it is descriptive, and, in terms of nature, it is based on the post-event approach. It is also quantitative because accounting and capital market information is used for calculating the variables. The data related to 104 companies listed in Tehran Stock Exchange during 2011-2018 have been analyzed. Five years of information is required to calculate some variables; therefore, the data required by the sample companies should be available for a period of 12 years (2007-2018). To test the research hypotheses, the multivariate linear regression model and the panel data method were used as well. A combined index based on accounting variables and the average decimal ranking method are used to determine the value of the economic, ethical and legal dimensions of corporate social responsibility. To measure the economic performance of companies, the indicators of economic value added and market value added have been used. The theoretical business strategy framework of Miles and Snow (1978, 2003) has also been used. It classifies business strategies into prospectors, analyzers and defenders based on a composite measure to proxy for a firm’s business strategy. This composite measure strategy involves six firm attributes including ratio of R&D expenses to sales, ratio of employees to sales, one-year percentage change in total sales, ratio of SG&A expenses to sales, standard deviation of the total number of employees, and net property, plant and equipment scaled by total assets. The effect of strategy has been investigated in from the viewpoints of strategy and strategy type. Results and Discussion: The first to sixth hypotheses investigate the effects of economic, ethical and legal dimensions of corporate social responsibility on economic performance (i.e., economic value added and market value added). The positive coefficient of variables indicates that increasing the economic, ethical and legal dimensions of corporate social responsibility increases the companies’ economic performance and the hypotheses are confirmed. The seventh to twelfth hypotheses investigate the moderating effects of the business strategy on the relationship between corporate social responsibility and the economic performance of companies. The moderating effect of the business strategy has been studied in two ways, strategy and strategy type. In both methods, the moderator role of the strategy on the relationship between corporate social responsibility and economic value added is positive and significant, and the hypotheses are confirmed. Also, the impact of strategy on the relationship between the economic and ethical aspects of corporate social responsibility and market value added is positive and significant. But the significance of the legal dimension has not been confirmed. The results indicate that, regardless of the presented method and the corresponding calculations, aggressive strategy has a greater impact on the relationship between corporate social responsibility and the economic performance of companies.Conclusion: Based on the statistical results, the positive effect of economic, ethical and legal dimensions of corporate social responsibility on economic performance is confirmed. The results are in accordance with the instrumental theory in which the purpose of corporate social responsibility is earning profit and acquisition of economic benefits for the shareholders. The stakeholder and legitimacy theories support the research findings too. According to the stakeholder theory, the value of the firm is increased by respecting the rights of all the stakeholders. Therefore, paying attention to their various demands by the management will lead to the survival of the organization. Respecting the social norms and the observance of rules and regulations to confirm the legitimacy by the government and general public can also lead the company to achieve its goals. Firms that follow a prospective strategy compete together to produce products and find new markets. They are always looking for innovation in product and market development. On the other hand, firms following a defensive strategy focus on a limited product market, and their efforts are to increase production efficiency. Taken together, the results suggest that business strategy is an important determinant of corporate social responsibility performance. The performance of defenders is similar to the strategy of cost leadership, and the performance of prospectors is similar to the strategy of differentiation. Hence, prospectors take advantage of corporate social responsibility, as their innovation-oriented strategy, and enjoy the benefits of corporate social responsibility more than other companies.

Within the real estate sector, the concept of sustainability has traditionally been associated with green building initiatives. This study broadens the scope by examining environmental disclosure practices across a spectrum of stakeholders, including developers, financiers, suppliers, and advisors, within the real estate sectors of Australia and India. Utilizing the Global Reporting Initiative (GRI) standards to evaluate environmental reporting, this research scrutinizes publicly disclosed company data to assess the sector’s engagement with sustainability. The findings reveal a pronounced focus on emissions and energy, with less attention to other critical factors like biodiversity, materials, and supplier environmental assessment. This selective disclosure suggests a need for a more holistic approach to sustainability reporting. This study also investigates the influence of regional nuances and the integration of international reporting standards, shedding light on the varied practices of sustainability reporting within the industry. Furthermore, this paper examines the relationship between environmental disclosures and financial performance, measured by the economic value added (EVA). It was observed that environmental disclosures do not show a significant correlation with EVA for companies in either country, indicating that current reporting practices do not directly impact financial outcomes as captured by this metric. These findings offer actionable insights for enhancing reporting practices, encouraging a collective approach to address the environmental impacts of real estate, and contributing to the discourse on responsible environmental stewardship.

The production, or value added, approach to GDP involves calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term ‘value added’ be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.

Modern approaches to assessing the cost of capital of a company in order to choose the most successful structure are considered. The SARM model for estimating the cost of equity is described in detail. The indicator of economic value added was proposed as a criterion of economic efficiency. Modern approaches to assessing the value of a company are reflected, financial instruments and market indices used to assess the cost of capital of companies are studied. The hypothesis of the relationship between the capital structure and value was also evaluated and confirmed on the example of an operating oil and gas company, taking into account the actual results of its activities and industry characteristics.

This paper investigates the relative and incremental information content of KPMG's recently developed metric for shareholder value creation: earnings less risk-free interest charge (ERIC). We assess if ERIC has a better ability to predict stock returns than earnings, cash flow from operations (CFO), earnings before extraordinary items (EBEI), residual income (RI), or economic value added (EVA). We evaluate data from 214 companies listed on the U.S. Standard & Poor's 500 Index from 2003 to 2012 (2354 firm-year observations). Similar to previous studies, we confirm that CFO and EBEI have the strongest association with stock returns in the short term, while EVA trails behind all other metrics. In terms of new findings, ERIC is the best predictor of stock returns over a 5-year period, as well as during times of crises (from 2009 to 2010). In this period, ERIC also adds incremental information content beyond that of EBEI. However, the low-short-/mid-term predictive ability of shareholder value metrics (EVA, ERIC) raises concerns regarding their reliable use in future research on shareholder value creation. We consequently propose a research agenda that focuses less on the measurement and more on the management of shareholder value. [ABSTRACT FROM AUTHOR]

The sevral stages in the operation of wood and furniture manufacture, from cutting and shaping to finishing and polishing, result in a lot of wood waste of varying degrees in size, shape and type, and dealing with these violations in developing African countries, especially Egypt, is done in random ways that lack planning, whether from In terms of storage, transportation or reuse, due to the lack of a clear mechanism for industrial establishments that adopt the principle of sustainability to deal with these wastes, these wastes remain a source of increasing concern, and often constitute environmental challenges, and this research has addressed the presentation of a sustainable model for managing this waste , Is to create a production unit that works to run those wood waste that comes out of the industry periodically, and turn it into precise sawdust produced according to studied standards through experiments to determine special specifications such as, for molding it afterwards with reused plastic, to produce artistic products that can be used once Other, which represents a new economic dimension for these waste and in a sustainable way, based on modern molding techniques to deal with waste in a sustainable and economic way, and thus the waste turns into a source of income to the company and represents an added value to the actual product, and the disposal of waste to project generates income after covering the costs of its establishment.Keywords: Wood reuse - sustainable manufacturing - wood waste management - compound materials - economic value added.Research problem : The majority of the woodworking and wood industries operating units in Egypt and Africa lack an effective scientific method for managing industrial waste that achieves the principle of sustainability.

This paper deals with the ever-increasing issue of bankruptcy prediction in distressed economies. Specifically, the aim of this study is to create a model by establishing a new set of predictor variables, which achieves significant discrimination among listed manufacturing firms in Greece, by using multivariate discriminant analysis (MDA). An equally balanced matched sample of 28 Greek-listed manufacturing firms was used in this study covering the distressed period from 2008 to 2015 (including all firms that went bankrupt between 2008–2015). It is found that the quick ratio, cash flow interest coverage, and economic value added (EVA) divided by total assets are significant for predicting bankruptcy in Greece. The discriminant analysis (DA) model comprised the aforementioned variables and correctly classified 96.43% of grouped cases 1 year before bankruptcy. The adjusted DA prediction model for two and three years before bankruptcy used the same variables and correctly classified 92.86% and 89.29% of grouped cases, respectively. Consequently, this mix of financial ratios achieved strong classification accuracy even three years before bankruptcy, captivating an overall picture of a firm’s financial health and providing a powerful tool for decision making to investors and risk managers in the banking section and economic policy makers.

Purpose - This study aims to empirically test and analyze the influence of information content of cash flow statements, Dividend Payout Ratio (DPR), Economic Value Added (EVA) Corporate Social Responsibility (CSR) on the trading volume of empirical study stocks in manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2018. Method - The number of samples used in this study was 169 taken from financial report on idx. The analytical techniques used were multiple regressions in order to obtain a comprehensive picture of the relationship between variable and each other. This research used a quantitative approach with its research population of companies included in the manufacturing sector listed on the Indonesia Stock Exchange in 2014- 2018.. Result - Based on the results of this study, investment cash flow and Dividend Payout Ratio (DPR) significantly influenced the trading volume of stocks. Meanwhile, operating cash flow, funding cash flow, Economic Value Added (EVA) and Corporate Social Responsibility (CSR) had no significant effect on stock trading volume. Implication - This research is suggested to improve development of trading volume in investor decision making for investment and for companys’ performance assessment. Originality - This research is the study that used content of cash flow resporting information, dividend payout ratio, economic value added, corporate social responsibility on stock trading volume.

Added over the period 2006-2018. We focused on different proxies of corporate governance indicators, such as the Directors' Effectiveness, the Transparency and the Disclosure, Responsibility. Basel Principles have been used to make corporate governance indicators and Stern & Stewart and Chew (1995) method have been used to make banking economic value added. We used the PCA method to choose important indicators. The results of PCA estimation identified ten important variables affecting banks' economic value added. Due to the importance of banks' age in creating economic value-added, banks are divided into two classes according to age. The GMM method is used to estimate the models. Eight models were designed to examine the impact of different corporate governance measures on the banking economic value added. The results indicated that corporate governance indicators were significant in explaining changes in the Iranian banking economic value added. The result also shows that according to the banks' age, the effectiveness of the board structure is greater than others. This illustrates the importance of board structure more than other criteria.

Objective: To attract investors, firms should keep their values attractive. If the value of the company decreases, the trust of investors in the company will also decrease. Managers can use earnings management to influence the value of a company. Therefore, in this study, the effect of accrual-based and real earnings management on firm value has been studied. Thus, in addition to assessing the effects of earnings management on the value of the firms, the research findings will also help to develop financial literature in this field due to the use of modern criteria in evaluating the value of firms. Methods: To achieve the aim of the study, the financial information of 180 firms listed on the Tehran Stock Exchange from 2008 to 2018 was studied. The research hypotheses were also tested using multivariate regression models with combined data. Results: The research findings showed that accrual earnings management through discretionary accruals and real earnings management through abnormal production costs and abnormal operating cash flows have a positive and significant effect on the value of the firm obtained from free cash flow.But there was no significant relationship between real earnings management through abnormal discretionary expenses and value of the firm obtained from free cash flow. However, the impact of accrued earnings management through discretionary accruals and real earnings management through abnormal production costs and abnormal operating cash flows on the firm's value obtained from economic value added has been negative and significant. Also, real earnings management through abnormal discretionary expenses has had a positive and significant effect on the firm's value obtained from economic value added. Conclusion: The results show that earnings management affects the value of companies. This effect is positive in some cases and negative in others. This showsthat manipulating discretionary accruals and actual activities have different effects on the value of companies, which can seriously jeopardize the interests of stakeholders in the company. Therefore, in order to prevent the harm of users of financial statements, especially investors, or in the broader perspective of the country's economy through earnings management procedures, it is necessary for organizations and legal institutions responsible in this field to take the necessary measures to prevent earnings management activities.

Information sharing in E-Collaboration is increasingly prevalent. This study measures the shareholder value created by E-Collaboration along a supply chain. Three system dynamics (SD) models are developed to investigate the impact of three different information sharing strategies, namely, non-information sharing, partial information sharing, and full information sharing. The impact on different supply chain parties is quantified from the value-based management perspective and economic value added (EVA) is adopted as the value-based performance metric. A numerical example of an E-Commerce retailer-distributor-manufacturer supply chain is presented and followed by profound implications. The analysis demonstrates how value is amplified by E-Collaboration and the unified metric reveals added value’s highly imbalanced distribution among different parties. The EVA boost reaped by the manufacturer is about 1000 times more than the retailer’s gain under full information sharing. The study provides an original contribution to this stream of research by proposing a uniformed supply chain performance metric, revealing counter-intuitive implications and guiding strategic E-collaboration.

Real estate development investments are characterized by a high value of projects, which in the event of irregularities in their implementation may result in significant losses for the economy. The lack of tools enabling ongoing control of real estate developers may result in disruptions in the operation of business entities on the real estate market, affecting the proper functioning of many stakeholders. The article proposes a method of measuring value for real estate companies. Accounting principles that regulate financial statements specify that they cannot be used directly to measure the value of a developer. The article proposes examples of corrections to financial statements supporting value measurement. When calculating value management measures, (i) adjustments excluding the impact of asset valuations, (ii) adjustments of settlement negative EVA of the investment phase, (iii) adjustments of advance payment of NPV of the project, and (iv) adjustments of excluding the impact of interest on foreign capital should be made. Examples of using these adjustments in a short-term housing project and a long-term commercial project were presented. The impact of the proposed adjustments on the comparison of formal financial statements and value measures for a large developer listed on the WSE was also discussed.

Bu çalışmayla; büyük ölçekli işletmelerin performans göstergeleri ile entelektüel sermaye bileşenleri arasındaki ilişkilerin araştırılması amaçlanmıştır. Çalışma kapsamında, Türkiye’de kimya sektöründe faaliyet gösteren seçilmiş büyük ölçekli işletmelerin 2009-2016 arası döneme ilişkin verileri analiz edilmiştir. Söz konusu işletmelerin entelektüel sermaye hesaplamasında, Ante Pulic’in entelektüel katma değer katsayısı yönteminden yararlanılmıştır. Çalışmanın sorunsalı, kimya sektöründe faaliyet gösteren işletmelerin performans göstergeleri (ekonomik katma değer, verimlilik, aktif kârlılık, büyüme ve aktif devir hızı) ile entelektüel sermaye bileşenleri arasında istatistiksel ilişkilerin varlığının araştırılmasıdır. Değişkenler arasındaki ilişkiler araştırılırken, korelasyon ve regresyon analizleri kullanılmıştır. Analiz sonucunda; ekonomik katma değer, aktif kârlılık ve verimlilik parametreleri ile entelektüel sermaye katsayısı arasında anlamlı ve pozitif yönlü ilişkiler tespit edilmiştir. Analizde öne çıkan sonuçlardan biri, ekonomik katma değer yaratma potansiyeli yüksek işletmelerin benzer şekilde yüksek piyasa değerlerine sahip olmasıdır. Entelektüel sermaye bileşenleri ile kimya sektörü işletmelerinin performans göstergeleri üzerinde etkili olduğu görülmüştür. Büyüme ve aktif devir hızı göstergeleri ile entelektüel sermaye bileşenleri arasında ise anlamlı bir ilişki bulunamamıştır.

The study presents a model of comparative analysis of financial performance based on two categories of instruments and evaluates the interdependencies between different performance measures. Based on the information gathered from secondary sources, we determined, interpreted and dynamically analysed the following indicators: return on assets, return on equity, degree of global indebtedness, current and quick liquidity and economic added value. The obtained results allowed the shaping of two performance profiles on the basis of which the ranking of the analysed companies was made. In order to identify the interdependencies between the different performance measures, we performed a first regression analysis which indicated that the company's ability to create added economic value depends on achieving high rates of economic profitability. Because in the analysed period there were major variations of the macroeconomic indicators, we performed a second regression analysis which indicated that the economic growth rate positively influences the two rates of return.

Miles and Snow (1978, in Habbe and Hartono, 2001) classify corporate strategy into four typologies: prospector, defender, analyz-er, and a reactor where prospector and defender was at its extreme. Return the stock as a aims the investor will be different for the company due the defender and prospector how to operate the two companies mutually contradictory. This research aims to test the influence of earnings, cash flow, and economic value added of return stocks as an indicator for investors to predict the return on the company’s stock prospector and defender. This empirical study using consolidated financial report data and information from the Indonesian Capital Market Directory for all manufacturing companies listed on the Indonesian stock exchange. A grouping of companies in the prospector and defender using common factor analysis in accordance with previous research. Earnings, cash flow, and EVA is measured by the weighted average of ordinary shares outstanding. The results showed that only the operating cash flow has the effect on the return on the company’ stock prospector. While in the company of a defender, all variables have no effect on the return of shares. This shows there are still many other variables that can affect the return of shares. In addition the research indicates that the use of the strategy of the prospector and defender influencing variables can be the main indicator in predicting the return of shares.

Research background: In the past, the main objective of a company was to generate sufficient profit. Nowadays, a company must seek to achieve much broader objectives. To be successful in this pursuit, it must not only measure financial performance, but also monitor internal and external developments, increase shareholders’ wealth and protect the interests of other stakeholders, i.e. to analyze and act on those factors that affect company value. Purpose of the article: The objective of the contribution is to determine through the use of artificial neural networks the relationship between business value drivers, or value based drivers (VBD), and EVA Equity, which is economic value added (EVA), of small and medium-sized enterprises operating in the rural areas of the Czech Republic. Methods: The data was obtained from the Bisnode´s Albertina database. The data set consists of the profit and loss accounts for 2013 to 2017 of small and medium-sized enterprises operating in rural areas of the Czech Republic. Two scenarios are analyzed. In the first, the independent variables are only the value drivers, whereas in the second, company location (region) is included. The objective is to find the dependence of EVA Equity on individual VBD and company location. A sensitivity analysis is conducted, on the basis of which the importance of individual value drivers and company location is determined. Findings & Value added: The output is a set of value drivers, which could be used by company managers to regulate the growth of EVA Equity, i.e. value for shareholders. The findings reveal that the difference between successful and unsuccessful companies is determined by the level of involvement of human capital; companies use a large number of substitutes for factors of production, whereby the involvement of borrowed capital is likely to cause a positive financial leverage effect.

The main objective of this paper is to check if value-based management in its classic design, 1980-2000, still works in the practice of one of its most prominent cases, Siemens. The paper also aims to describe value-based management in Siemens’ practice 1998-2020. This should enable a comparison between theory and practice the paper targets. The research methodology is case study: literature review, empirical data analysis, conclusions based on comparison. The case study is exploratory and descriptive. The article relies on secondary evidence about Siemens during 1998-2020, selects the evidence that pertains to value-based management and constructs the Siemens case example. The article is based on a large body of evidence, where the statements about valuebased management are chosen based on their relationship to key words such as value, value drivers, value creation. The results may be the confirmation or denial of classic value-based management. The conclusion is that managing for Economic Value Added still works in the current business context. Other findings are Siemens’ driver tree during 1998-2020 in thorough description.

A structural model for the verification of the causal relationship between sustainability and economic value added is presented in this paper. The study has shown that there is no definite and unique relationship between corporate sustainability and economic value. Based on the results of the structural modelling, sustainable value model ESGVA is methodologically improved. The model expresses all four dimensions of corporate sustainability: environmental, social, corporate governance and economic. The case study demonstrates how different the results are if a purely economic concept of company value is used compared to value that takes into account environmental, social and corporate governance factors. The model is applicable to comparative analysis of socially responsible investments. Sustainable value provides extra information on corporate performance and can be used for decision-making of individual investors. First published online 17 March 2022

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Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the greater financial situation and determine how best to strengthen the business. The main objective of the study is to analyse the profitability position of the company and Economic Value added. It is the process of identifying the financial strength and weakness of the firm properly by establishing the relationship between the items of balance sheet and profit and loss account. The detail regarding the history and financial details are collected through discussions with the company officers. Secondary data is collected based on the annual reports of the company for period 2015-16 to 2019-20. The company’s performance is measured through a financial tool i.e., ratio analysis and also with the help of Economic value added. [ABSTRACT FROM AUTHOR]

Este estudo teve como objetivo analisar a relação entre a remuneração dos CEOs e a criação de valor em empresas brasileiras listadas no IBRX 100. Para tal, contemplou-se o conceito de criação de valor a partir da utilização de medidas que incorporam o custo de oportunidade das empresas, quais sejam: Economic Value Added (EVA) e Market Value Added (MVA). O período em análise foi de 2015 a 2019, com uma amostra de 75 empresas. Para testar as hipóteses, utilizaram-se modelos de regressão linear múltipla, estimados pelo Método dos Momentos Generalizado Sistêmico. Os resultados indicam que o EVA e o MVA impactam na decisão de aumentar ou diminuir a remuneração dos CEOs. Portanto, os achados desta pesquisa podem indicar um alinhamento entre a política de remuneração das empresas analisadas e a criação de valor das organizações, amenizando os conflitos de interesse entre agente e principal.

The article deals with the modern financial performance indicator EVA of the three leading companies in the automotive industry in Slovakia: Volkswagen Slovakia, Kia Motors Slovakia, PCA Slovakia. Based on the previous studies conducted by various authors, no company in Slovakia paid sufficient attention to the modern EVA indicator. Therefore, the paper aims to calculate the Economic Value Added as a tool to increase the effectiveness of financial performance management in selected companies for 2019. Following this study, it can be said that although the calculation of the modern EVA indicator is more complex, companies should pay sufficient attention to it, as it is a management tool used to value the company and also takes into account value creation for owners. Based on the calculation, we found that all of the three main companies achieved positive values of this modern indicator. Based on this, we conclude that the companies produce value from the funds invested in them. It is important to note that these companies are foreign companies that have decided to invest in the automotive industry in Slovakia. [ABSTRACT FROM AUTHOR]

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