Search

Dissatisfaction with traditional accounting-based performance measures has spawned a number of alternatives of which Economic Value Added (EVA) is currently the most prominent. How can we tell which performance measures best capture managerial contributions to value? There is currently a heated debate among practitioners about whether the new performance measures have a high correlation with stock values and their returns rather than do traditional accounting earnings. Academic researchers have relied instead on the variance of performance measures to gauge their relative accuracy. To formally address the above debate, use a relatively standard principal-agent model to which contracts can be based on any two accounting-based performance plus the stock price. Rather than model detailed differences between EVA and traditional measures such earnings, we focus on the problem that while the variability of each measure is observable, its exact information (signal) content is not. The model provides a formal method for researchers to ascertain the relative value of alternative accounting-based measures based on two districts uses of the stock price. In our model, stock prices also can reveal the signal content of alternative accounting-based performance measures. We then show how to combine stock prices, earnings, and EVA to produce an optimally weighted compensations scheme. We find that the simple correlation between EVA or earnings and stock returns is a reasonably gauge the merits of adding a measure like EVA by examining its correlation with the firms' stock price. This is not because stock returns are themselves an ideal performance measure, rather it is because stock returns are themselves an ideal performance measure, rather it is because correlation places appropriate weights on both the signal and noise components of alternative measures... [ABSTRACT FROM AUTHOR]

Introduction: Corporate social responsibility is a strategic tool for increasing the value and sustainability of a company in the long run through establishing positive relationships with the community, complying with the rules and regulations and applying ethical procedures. The purpose of this study is to investigate the short-run and long-run effects of corporate social responsibility dimensions on the value creation of pharmaceutical and non-pharmaceutical companies. Method: This research is applied in terms of its purpose and by nature, it is ex-post facto study. The data gathered from 27 pharmaceutical companies and 77 non-pharmaceutical companies listed on the Tehran Stock Exchange during 2010-2016 was analyzed. To measure the dimensions of corporate social responsibility Schwartz and Carroll's theory was applied and multivariate linear regression model and panel data method were administered to test the decimal ranking method based on accounting variables. Results: Economic, legal and ethical dimensions of corporate social responsibility has a positive and significant effect on the value creation of companies. The corporate social responsibility mostly impacts the companies’ value creation in the long run. Conclusion: Corporate social responsibility will reduce information asymmetry and respect all stakeholder rights. Applying ethical procedures in preparing financial reports and complying with rules and regulations will increase the quality of information and lead to optimal decision making by investors. As the company’s social performance impacts its economic performance, the companies’ managers commit to take their social responsibly in order to create value, maximize shareholders’ wealth, serve interests of stakeholders, and reduce agency costs.

This study aims to analyze the effect of Economic Value Added on Tobin Q with Market Value added as intervening variable. The sample of this research is a manufacturing company listed on Indonesia Stock Exchange in 2011-2016. Data analysis using regression analysis. The results showed that Economic Value Added did not affect Tobin Q and Market Value added (MVA) effect on Tobin Q. Market Value Added (MVA) did not become intervening variable between EVA and Tobin Q. Market Value added are not mediate Economic Value Added to Tobin Q

Economic Value Added (EVA) is a value-based accounting measure used by companies to measure the amount of value created for shareholders. EVA requires the conversion of accounting values to economic values. This conversion process is known as the EVA adjustment. If accounting values are not converted to economic values, the value of the EVA can be distorted. Previous studies have shown that companies are experiencing difficulties in implementing EVA adjustments. To reduce these difficulties, companies have decided to limit their EVA adjustments to ten or even fewer. The research problem is that if the appropriate adjustments are not made, an inaccurate EVA measure will be calculated. The aim of the research is to measure whether deferred taxes impact EVA. The study is conducted within a quantitative research paradigm. Secondary data analysis was carried out on JSE-listed food producers over a seven-year period, from 2004 to 2010. The unadjusted EVA was compared to the adjusted EVA measure to determine the before and after effects of deferred taxes on EVA. The findings of the study revealed that deferred taxes either understated or overstated the value of the EVA during the period 2004–2010. In addition, the results from the regression analysis revealed an overall significance for all deferred tax predictors. The results from the study showed that deferred tax had a significant impact on the value of EVA. Therefore, the study recommends that companies implement the deferred tax adjustment on EVA.

Enterprises are currently trying to bring new technologies into production and use new procedures and recommendations in various management activities. However, they should not forget to change their approach to the evaluation of the results achieved and focus on the use of modern methods of performance evaluation and prove to apply them in their enterprises. The aim of this paper is to point out several variants of the calculation of Economic value added (EVA) indicator, define the possibilities to apply EVA methods to the conditions of enterprises in the Slovak Republic and the need to adjust data providing financial statements and data for current accounts. Application of economic value added should be able to contribute to changes in the views of the owners and managers of enterprises in the Slovak republic for use not only as financial indicators.

The goal of the research is to present relations between the ability to generate value and risk in agribusinesscompanies. The ability to generate value of analyzed entities was determined using a rate of return on invested capitalexpressed by economic value addend (EVA). To characterize the risk of business indicators of operating and financialleverage were used. In periods of higher leverage lower rates of return on invested capital were noticed. The mainreason for growth of the degree of leverage was an increase in the share of fixed cost in gross margin along with adecrease of operating profit. This gave an evidence of a negative influence of risk expressed by leverage on ability togenerate value in agribusiness companies.

Economic Value Added (EVA) is one of the most important modern performance measures. The main difference between EVA and traditional measures is that EVA incorporates both financing costs of debt and equity capital. In addition, EVA includes adjustments that minimize some accounting distortions. EVA and Market Value Added (MVA) provide a more accurate evaluation of the firm’s financial performance. This paper involves a case study that analysis the use of EVA in selected Slovak companies. It examines the incremental information of a set of performance measures in the time period of 2010 - 2015, using regression models. Furthermore, we analyse the MVA performance and the relationship between EVA and MVA.

This study aims to examine the relationship between corporate governance and corporate economic performance, regarding the moderating effect of firm size. To test the hypotheses, multivariate OLS method was used. The data consists of 118 companies listed in the Tehran Stock Exchange in the period 2010 to 2014, and totally 708 company-years. The findings showed that corporate governance and corporate economic performance are positively correlated, and that firm size may enhance this relationship.

Purpose The fundamental objective of this research is to highlight the significance of the concept of Economic Value Added (EVA) in achieving stakeholder value creation and understand its importance in establishing a culture of performance in various organisations. Design/methodology/approach This research adopts a case study approach using simulation workshops to underline the merits of building performance culture in firms by implementing the concept of EVA. Findings The findings of this research indicate that effective implementation of EVA concepts helps firms in building a culture of performance and enhance stakeholder value. Practical Implications The methodology followed in this research can be applied to other industries and substantiate the utility of EVA in creating a culture of performance in various firms across industries. Originality/Value This research uses a novel approach to case study using a simulation exercise which had not been pursued by earlier researchers in this domain. [ABSTRACT FROM AUTHOR]

In the present study was determined the influence of the value change of the working capital on the variation of the economic value added indicator on a sample consisting of a number of 26 companies (2007-2017) belonging to the hotel and restaurant industry, listed on the Bucharest Stock Exchange. The correlation between the indicators was achieved by using the multiple linear regression method. The study showed that there is a strong link between the two economic indicators, over 80% of the change in economic value being explained by the change in working capital. It was found that a 1% increase in working capital, for the period 2007-2017, had the effect of increasing the economic value added by 0.38%. [ABSTRACT FROM AUTHOR]

Copyright of Revista Espacios is the property of Talleres de Impresos Oma 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.)

Copyright of Journal of Finance Letters / Maliye Finans Yazıları Dergisi is the property of Maliye Finans Yazilari Yayimcilik Ltd. 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.)

Copyright of Revista Espacios is the property of Talleres de Impresos Oma 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.)

Copyright of Dilemas Contemporáneos: Educación, Política y Valores is the property of Dilemas Contemporaneos: Educacion, Politica y Valores 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.)

This study determined the extent to which capital expenditure decisions made by listed manufacturing companies in Nigeria relate with the value of the firms in the long term. The ex post facto and correlational research designs were adopted for the study. Secondary data were extracted from the Nigerian Stock Exchange Fact Books for the period, 2010 - 2016. The number of manufacturing companies listed in the Stock Exchange during this period was 83, and the sample size used was 69. With the aid of regression analyses, the findings revealed that capital expenditure decisions had a significant relationship with long term value of manufacturing firms. The study concluded that capital expenditure decisions have a significant relationship with the long term value of manufacturing firms in Nigeria. It was recommended that management of manufacturing companies should ensure the holistic use of all techniques, exploring risks, real and growth options analyses as well as portfolio management techniques involving capital assets, in appraising capital investments before taking decisions. [ABSTRACT FROM AUTHOR]

Copyright of REUNIR: Revista de Administração, Contabilidade e Sustentabilidade is the property of REUNIR - Revista de Administracao, Contabilidade e Sustentabilidade 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.)

This article is aimed at studying the theoretical foundations and elaborating practical recommendations on introduction of the system of value-oriented controlling in the enterprise, using the common in practice conception of economic value added (EVA®). Approaches to calculation and directions for securing growth of the value of economic value added have been defined. Expedience of building a value-oriented controlling system based on this criterion has been substantiated. A regression analysis has been carried out, existence of a relationship between the market value and the value of the indicator of economic value added has been proved. A classification of the accounting adjustments when calculating the indicator values has been provided, allowing to reflect the actual performance and to minimize the disadvantages of the economic value added as an accounting indicator of effectiveness. Proposals to providing by enterprises the value-oriented reporting have been elaborated, which will help transforming the opportunities and prospects for growth in the real value by improving communications with investors and minimizing the information asymmetry between company and participants in the capital markets.

The economic added value is a key indicator in the analysis of the performance of economic entities. The study of this concept is the result of assumptions and premises that represent the basis for formulating the main goals that we set to achieve. The central objective of the analysis is to demonstrate that the classical method of analysis based on economic added value is a perfectible one. To achieve this objective, the analysis was divided into several sub-objectives: a theoretical approach that had the aim of presenting the current state of knowledge in the field of the analysis based on economic added value, and an empirical approach. The empirical approach pursued to the analysis of a company from the Romanian energy sector based on the economic added value, and aimed to propose an alternative to the classical method of analysis based on economic added value. Results of the analysis showed that the concept of economic added value is perfectible and adaptable to different informational needs of the stakeholders, but have raised some limitations that may be encountered when analyzing performance based on economic added value.

This article examines the determinants of economic value added (EVA) in insurance industries. It addresses the key components of EVA, the value drivers that are more important in managing economic value and the combination of these value drivers that best explain EVA as a group. The study covers the life insurance sector in South Africa, specifically focusing on the big five companies: Discovery Holdings, Liberty Holdings, MMI Holdings, Old Mutual plc, and Sanlam Ltd for the period 2004-2014. Variance and principal component analyses are used to identify the main drivers of EVA. Five main drivers were prominent, namely: underwriting, asset management, costs, opportunity cost and strategic investments. The implications of the results for best practice in the insurance industry are discussed.

The primary objective of this research is to investigate the relationship between tax avoidance, income and cash held in companies listed on the Tehran Stock Exchange from 2009 to 2013. In this regard, avoidance of paying taxes is independent variables and criteria for evaluating financial performance; namely return on assets, return on average equities, economic value added, market value added, and the ratio of free cash flow are considered as dependent variables. Firm size and financial leverage are also considered as control variables. In general, the statistical method used in this research is correlation and regression. The results of the research showed that there was a significant and reverse relationship between avoidance of paying taxes and performance evaluation criteria, cash held.