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 Economic Value Added EVA in Indian Corporates written by Karam Pal Singh and published by Deep and Deep Publications. This book was released on 2004 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sectors To Meet The Requirments Of Those Interested In Research And Study Of The Subject. 9 Chapters, 7 Appendices, Bibliography And An Index. The Focus Is On Economic Value Added And Its Various Aspects And Sub-Themes. Covers Many Financial Variables Like Eva, Npv, Arnw, Eps, Lp, Kp, Roce And Nopat.
Download or read book Economic Value Added written by Reeta Bharat Shah and published by . This book was released on 2015 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the outperformance of Economic Value Added (EVA) on traditional performance measures in explaining the contemporaneous Market Value Added (MVA).We also aim to test the best predictor of MVA of Indian companies among the value based measure and traditional performance measure. The study estimated the model using panel data regression for eleven annual observations from 2003-13 for 448 large listed Indian companies.We found that there exists a significant positive relationship between EVA and MVA. EVA also provides additional information to investors and can be adapted by corporates as a philosophy for encouraging and educating employees. Thus managers can utilize the information provided by EVA to distinguish among value creating and value destructing activities.
Download or read book Economic Value Added as an Emerging Tool of Performance Measurement written by Y. V. Reddy and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The concept of Economic Value-Added (EVA) is of recent origin. Considering its importance in the corporate world, it becomes vital to understand its role in shareholders' value creation and performance measurement for companies. The present study is an attempt to analyze the relationship between EVA and the traditional measures, i.e., Earnings Per Share (EPS), Return on Invested Capital (ROIC) and Return on Net Worth (RONW). Using a sample of 50 companies listed on Nifty 50 index of National Stock Exchange, India from 2009-10 to 2013-14, the study ranks the select companies based on their mean EVA. The study concludes that there exists significant difference between the mean values of the considered variables of the select companies. It also reveals that ROIC has significant influence on EVA.
Download or read book Complete Reference on Eva in Indian Corporates written by Muthumeenakshi M and published by LAP Lambert Academic Publishing. This book was released on 2011-09 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: Today's hottest financial idea and getting hotter" by FORTUNE magazine, Economic Value Added (EVA) is the hot topic of conversation among Financial analysts and Economist. EVA, a registered trademark of Stern Stewart & Co. is an estimate of a firm's economic profit- being the value created in excess of the minimum required rate of return of the company's investors. Having provided the meaning of the economic profit, it can be understood that a company creates shareholders' value only if generates returns in excess of its cost of capital. The excess of returns over cost of capital is simply termed as EVA. Here the cost of capital, includes both debt and equity cost. In contrast, the accounting measures allow debt cost only. This creates a critical issue to select a measure which reflects the performance of the company as well as the market performance. Hence in this book, the focus is on EVA to study its ability in reflecting the corporate performance in the light of maximizing the shareholders' wealth. Besides this, the usefulness of EVA in the investment decision making for the investors is also studied.
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 Economic Value Added Concepts And Cases written by Niranjan Swainchandra Sekhar Mishra and published by . This book was released on 2003-08-28 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book examines EVA as a measurement and reward system and as a financial decision support system. It gives an insight into EVA implementation in Indian as well as foreign companies along with CEOs perceptions. The cases explore implementations of EVA i
Download or read book Eva and Performance Measurement written by Madhu Sehrawat and published by Deep and Deep Publications. This book was released on 2009 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Value Added written by Bhagaban Das and published by Deep and Deep Publications. This book was released on 2009 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The EVA Challenge written by Joel M. Stern and published by John Wiley & Sons. This book was released on 2003-12-22 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Value Added - das EVA-Konzept - wurde von der Beratungsfirma Stern Stewart & Co. entwickelt. Es ist ein effektiver Maßstab zur Messung der finanziellen Performance eines Unternehmens und ist eng mit dem Shareholder-Value-Ansatz verbunden. Darüber hinaus kann mit Hilfe von EVA -Berechnungen auch eine Unternehmensbewertung durchgeführt werden; ein positiver EVA-Wert bedeutet einen Wertzuwachs, ein negativer hingegen einen Wertverlust. "The EVA Challenge" erläutert, wie man EVA implementiert - angefangen bei der Schulung von Angestellten bis hin zur Beantwortung und Lösung der häufigsten Implementierungsfragen und -probleme, denen Unternehmen begegnen. Diskutiert wird komplett neues Material zu 'real options', 'leveraged stock options' und anderen wichtigen Finanzkonzepte für Unternehmen der New und der Old Economy. Mit zahlreichen Fallbeispielen aus der Unternehmenspraxis.
Download or read book EVA written by Al Ehrbar and published by John Wiley & Sons. This book was released on 1998-10-15 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: EVA ("economic value added" - wirtschaftliche Wertschöpfung) ist eine Maßeinheit zur Ermittlung des echten Finanzergebnisses eines Unternehmens und eine Strategie zur Schaffung von Unternehmens- und Aktionärsvermögen. Das EVA-Prinzip besagt, daß ein Unternehmen kein Vermögen schafft, solange es nicht in der Lage ist, Gewinne einzufahren, die höher sind als die Kapitalkosten. EVA ist auch eine Methode, die Prioritäten innerhalb eines Unternehmens so zu gewichten, daß das Hauptaugenmerk auf der Schaffung von Vermögen liegt, und zwar zum Nutzen aller. Leicht verständlich geschrieben, mit zahlreichen Fallbeispielen bekannter Firmen und einem Minimum an Gleichungen und Finanzjargon. (11/98)
Download or read book Measuring Economic Value Added written by Samuel C. Weaver and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, consultants, the popular business press, a number of companies, and a few investment analysts have heralded Economic Value Added (EVA(R)). In theory, EVA is net operating profit after tax (NOPAT) less a capital charge for the invested capital (IC) employed in the business. This survey bridges the gap between quot;theoryquot; and quot;practicequot; by detailing how EVA proponents measure EVA. This survey is important because its fieldwork identifies significant inconsistencies in the measurement of EVA and its major components.
Download or read book Economic Value Added written by Manoj Anand and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The KPMG-BS study (1998) assessed top 100 Indian companies on EVA, sales, PAT, and MVA criterion. The survey has used the BS-100 list of companies using a composite index comprising sales, profitability, and compounded annual growth rate to cull out the top 100 Indian companies. The study covered the period 1996-97. The relationship between the ranks given in KPMG-BS(1998) study on four criterion variables for the 98 comapnies were studied by using Spearman's rank correlation coefficient. Though, the rank correlation between economic profit (EP) and PAT, EP and MVA are statistically significant, but it is not substantial. There is a high degree of correlation between PAT and MVA. Hence, EVA, REVA and MVA are better measure of business performance in terms of shareholder value creation and competitive advantage of firm.
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 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 written by Michael D. Houle and published by . This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Value Added (EVA), when applied properly in a company, impacts all departments and decisions. The equation for EVA as well as the adjustments that must be made to current accounting practices is the basis for an understanding of EVA. The success of EVA is displayed as companies that have implemented EVA to varying degrees are compared with companies that have not implemented EVA. Once the argument for the overall superiority of EVA is made, traditional performance measures and current accounting practices are evaluated. Then, the importance of creating value within corporations becomes apparent. Finally, a detailed example of the implementation process that took place several years ago at Harsco argued in favor of all companies adopting EVA.
Download or read book A Comparative Study of Economic and Market Value Added of IT Sector Companies in India written by Shipra Pruthy and published by . This book was released on 2014 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: In today's business world shareholder's wealth maximization is very important. The survival of any company is not possible without wealth generation for its shareholders. Many companies consider equity capital as free cost of capital but this approach is not relevant in the modern business world because equity is a costlier source of finance than other sources of finance. Economic Value Added (EVA) helps to calculate the true profitability of the company by considering the cost of equity. EVA concept has been given by Stern Stewart and Co. The company has given 160 adjustments in GAAP (General Accepted Accounting Practices) rules for the calculations of true economic profit. In the study three adjustments has been taken for the calculation of economic profit. Economic value added an important performance metrics and Market Value Added (MVA) is the wealth metrics of economic value added and is positively linked with economic value added. IT sector companies have been taken under consideration for this study. In this study it has been found that Indian Oil Corporation Ltd. is the most wealth creating company and Reliance Power is the most wealth destroying company for the year 2009-2011. The reason for negative economic value added is high cost of equity.There has been a long felt realization that the traditional metrics to analyze a firm's performance neither precisely measure the extent of wealth creation nor attach much value to the cost of equity shareholders funds. Considering the need for measures that can effectively assess wealth creation, Stern Stewart & Company has developed two metrics namely Economic Value Added (EVA) and Market Value Added (MVA). The IT sector company in India has not been immune to the global economic crisis which has led to slowdown of the industrial sector. Infosys, which is an important player in the IT sector companies in India, has been facing challenging times due to the recent slow-down. The sales and profits of the company are under strain and therefore the researchers considered it appropriate to take up the company for the purpose of assessing the extent of economic and market value added by the company.
