Economic Value-Added: A Review of the Theoretical and Empirical Literature
نویسندگان
چکیده
With increasing pressure on firms to deliver shareholder value, there has been a renewed emphasis on devising measures of corporate financial performance and incentive compensation plans that encourage managers to increase shareholder wealth. One professedly recent innovation in the field of internal and external performance measurement is a trade-marked variant of residual income known as economic value-added (EVA). This paper attempts to provide a synoptic survey of EVA’s conceptual underpinnings and the comparatively few empirical analyses of Acknowledgements: The authors would like to thank two anonymous referees for helpful comments on an earlier version of this paper. The financial support of a QUT Faculty of Business Research Initiative Grant is also gratefully acknowledged. Asian Review of Accounting 2 value-added performance measures. Special attention is given to the GAAPrelated accounting adjustments involved in EVA-type calculations. Economic Value-Added: A Review of the Theoretical and Empirical Literature
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