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- Title
ECONOMIC VALUE ADDED (EVA): A PERFORMANCE MEASURE OF STRATEGIC FINANCE.
- Authors
NAGARAJAN, K.
- Abstract
Economic value added has become the most fashionable measurement for determining the ability of a company to generate an appropriate rate of return. Profit maximization as a concept is age-old, wealth maximization is matured and value maximization is today's wisdom. Stern Stewart's EVA raises storm in corporate world and gives a new way to think about rewarding management. In this paper, an earnest effort has been made to explain theoretical foundation of EVA with its origination, meaning, computation, limitation and how it plays as a measure of organizational performance. EVA metrics provide managers with a commanding tool to weigh investment and spending decisions against capital requirements and investors' expectations.
- Publication
CLEAR International Journal of Research in Commerce & Management, 2015, Vol 6, Issue 11, p89
- ISSN
2249-4561
- Publication type
Academic Journal