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- Title
DEVELOPING A PRACTICAL MODEL FOR CALCULATING THE ECONOMIC VALUE ADDED.
- Authors
Morard, Bernard; Balu, Florentina-Olivia
- Abstract
The article discusses the use of Economic Value Added (EVA) indicator for the measurement of financial performance and compares the views of its proponents and opponents in the U.S. It states that EVA, developed by U.S. company Stern Stewart & Co., has the capability to yield huge rate of return to stockholders and enhance the financial performance of a company. It cites that EVA uses account statements including balance sheet and income statement to calculate the profit, wherein it is not subjected to accounting rules because the rules affect the calculation of invested capital.
- Subjects
UNITED States; ECONOMIC value added (Corporations); ACCOUNTING methods; BUSINESS valuation; CORPORATE profits; FINANCIAL performance; STOCKHOLDERS; RATE of return; CAPITAL investments; ACCOUNTING standards; STERN Stewart &; Co.; ACCOUNTING
- Publication
Economic Computation & Economic Cybernetics Studies & Research, 2009, Vol 43, Issue 3, p1
- ISSN
0424-267X
- Publication type
Article