Download or read book Economic Value Added EVA Drivers and Leverages written by Dirian El Amine and published by GRIN Verlag. This book was released on 2013-04-10 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Project Report from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1,5, University of Cooperative Education Stuttgart; Horb, language: English, abstract: From the contemporary dominance of the shareholder value approach arises more and more the necessity to precisely detect its performance as shareholder value is broadly seen as a significant indicator determining a company’s success or failure. However, measuring the performance of a company’s shareholder value can be very challenging. Hence, the purpose of this paper is to deal with a well-known approach that enables businesses to detect its shareholder value performance: Economic Value Added (EVA). The thesis discusses the correlation between EVA and shareholder value, it further outlines its main drivers. In the second part, the paper elaborates on the specific links of the EVA approach to a regional Sales department and identifies the department’s main leverages on EVA. In order to detect the influence of the main operative decisions on EVA, the thesis introduces the key figure Effect-on-EVA. The applicability of Effect-on-EVA is shown in a model calculation. Above all, this project thesis shall create a profound practical value by sharpening the awareness of how to influence EVA in a positive way. In order to meet the recommended scope, the paper does not elaborate Asset Management, Accounts Receivable Management and Incentive Compensation in detail, but strives to point out the respective links to EVA.
Download or read book EVA as a Measure for Shareholder Value and Executive Compensation A Critical View written by Stephan Pietge and published by GRIN Verlag. This book was released on 2007-07-29 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2003 in the subject Business economics - Investment and Finance, grade: 1.0 (A), Edinburgh Napier University (Business School), 200 entries in the bibliography, language: English, abstract: For several decades academics have been looking for an efficient performance measure, which not only reflects the effectiveness and efficiency of the firm, but also aligns manager′s and shareholder′s interests. Even though many studies question the merit of a single measure for overall firm performance, Stern and Stewart claim to have solved the puzzle with a method labeled Economic Value Added (EVA). This paper examines two aspects: First, EVA′s predicting power regarding stock returns and second, its impact on management behavior as an element of executive compensation. At first glance, Stern and Stewart seem to be right. During the early 1990s their approach gained tremendous popularity, reflected by dozens of anecdotal success stories. Though EVA′s demand of integrating a total capital charge is appealing, the concept is by no means new. The framework of residual income (economic profit), which has been around for decades, also requires a charge for equity capital. Further, some scholars criticize the use of accounting adjustments in order to calculate EVA and its ability to capture performance at the divisional level. So far there is no independent empirical evidence that EVA is superior to accounting measures in predicting stock returns. Some studies even question EVA′s incremental value regarding executive compensation by stating that economic profit is doing as good a job. Consequently, it is tempting to doubt that Economic Value Added indeed adds any value.
Download or read book Economic Value Added EVA written by Christoph Müller and published by . This book was released on 2007 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Value Based Controlling International Accounting Economic Value Added EVA An Overview written by Thomas Hammer and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Economic Value Added for Competitive Advantage written by Saurabh Sri and published by Cambridge Scholars Publishing. This book was released on 2019-01-15 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Value Added (EVA®) has been a much discussed concept that has assisted in the turnaround of a number of multinational enterprises across the world. It is based upon the theory of ‘economic profit’ that enables companies to capture and create wealth both for themselves and their stakeholders. The strategic decisions of performance and posturing can be grounded upon gaining competitive advantage through mapping economic profits. Existing studies on competitive advantage primarily discuss the meaning, definitions, and sources thereof. However, there are few contributions that discuss how competitive advantage can be measured specifically with respect to Indian companies. This book bridges that gap and advocates that the EVA® can be used to measure and establish the competitive advantage for Indian firms. It is based upon an in-depth study of such companies to explore the extent of use of EVA® in the top BT500 companies in India. It shows that the companies that use EVA® have a distinct competitive advantage over their competitors.
Download or read book The Concept of Economic Value Added EVA in Controlling written by Razaaq Akanni and published by . This book was released on 2001 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Handbook of Technology Management Supply Chain Management Marketing and Advertising and Global Management written by Hossein Bidgoli and published by John Wiley & Sons. This book was released on 2010-01-12 with total page 961 pages. Available in PDF, EPUB and Kindle. Book excerpt: The discipline of technology management focuses on the scientific, engineering, and management issues related to the commercial introduction of new technologies. Although more than thirty U.S. universities offer PhD programs in the subject, there has never been a single comprehensive resource dedicated to technology management. "The Handbook of Technology Management" fills that gap with coverage of all the core topics and applications in the field. Edited by the renowned Doctor Hossein Bidgoli, the three volumes here include all the basics for students, educators, and practitioners
Download or read book EVA as the best financial performance measure the theory of reality written by Alina Ignatiuk and published by GRIN Verlag. This book was released on 2009-04-23 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: A, St. Mary's University San Antonio, Texas, language: English, abstract: In this paper these issues will be discussed: •the main purpose and functions of the financial performance management and how it is related to the problem of shareholders value creation, company growth and managers decision making process and management motivation; •the appropriate measures of management performance from the shareholders point of view; •contradictions or goal incongruence between shareholders, management and company long-term growth.
Download or read book Driving Growth written by Jan Mouritsen and published by . This book was released on 1998 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Summary The EVA Challenge written by BusinessNews Publishing, and published by Primento. This book was released on 2014-11-12 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The must-read summary of Joel Stern and John Shiely's book: "The EVA Challenge: Implementing Value-Added Change in an Organization". This complete summary of the ideas from Joel Stern and John Shiely's book "The EVA Challenge" shows how Economic Value Added is the best and most direct measure of whether a business is creating wealth when the cost of its capital has been taken into account. EVA also aligns precisely the interests of the company’s owners with the interests of the managers in a way that is free of the distortions and vagaries of accounting conventions. In their book, the authors demonstrate that effectively harnessing EVA will require three components: a measurement system, an incentive system and a financial management system. This summary explains each of these components and how you can implement them to analyse the success of a business. Added-value of this summary: • Save time • Understand key concepts • Expand your knowledge To learn more, read "The EVA Challenge" and find out how you can master the art of Economic Value Added.
Download or read book Performance Measures in Value Management written by Otto Max Schaefer and published by Erich Schmidt Verlag GmbH & Co KG. This book was released on 2002 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Value Added EVA and Sector Returns written by Nuttawat Visaltanachoti and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Value Added and Its Application to Private Businesses written by Benjamin Paul Hastings and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Value Added (EVA) is an evaluation tool that has become popular. The underlying idea of EVA is that equity capital is not free. The focus of EVA research has been on public companies. However, there are some parts of EVA that are useful to private companies. Two major areas of usefulness are cost of capital and bonus plans. Doing complicated calculations and making many accounting adjustments however are not useful to private companies.
Download or read book Economic Value Added EVA written by Issham Ismail and published by LAP Lambert Academic Publishing. This book was released on 2011-07 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: A tool which could help in explaining a company s performance in terms of quantitative factor is very much needed. Over the last few years, many believe that traditional tools such as accounting earnings have provided useful information in predicting company performance. Economic Value Added (EVA) has recently amazed much attention as a tool that takes into consideration many factors such as economy, accounting and market information in its assessment consideration. This book dedicated to reveal the relationship between EVA and the company performance. It also sought to explain the ability of EVA, compared to traditional tool, in measuring performance under various economic conditions; pre-economic crisis, during economic crisis and post-economic crisis period. The findings of the study is useful to assist finance expert in utilizing new tool in predicting company performance or anyone else who need to know EVA better.
Download or read book Managing Risks in Supply Chains written by Thorsten Blecker and published by Erich Schmidt Verlag GmbH & Co KG. This book was released on 2006-09-14 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new volume, edited by Wolfgang Kersten and Thorsten Blecker, offers the most important perspectives on supply chain risk management. The contributions written by named experts provide actual information about workable approaches for supply chain risk management, analyses of supply chain risks, identification of key risk factors for logistics outsourcing, assessment of the uncertainty of delivery. With this book readers will gain central insights how to handle approaches for supply chain risk management within their business. They will learn how to manage risks effectively to build leaner supply chains with a maintainable risk exposure for all partners in industry and services.
Download or read book Economic Value Added EVA written by Joseph Doherty and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Company Valuation Using the Economic Value Added EVA approach written by Wolfgang Zielke and published by . This book was released on 1999 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:
