EVA - Economic Value Added: Sifting the Direct from the Circumstantial

Abstract

Ever since the accounting and financial disgraces at the turn of the new century and following the financial crisis and the resultant attack on corporate greed, Economic Value Added (EVA) has picked up momentum as a workable tool to allay and consolidate corporate, labour and market objectives. It proposes a comlementary system to traditional accounting in the quest to distance financial reporting from its abuse and the creation of the despised "market in performance." This Paper assesses how EVA confronts the performance/reporting and motivator/calculator issues and analyses whether the positive results emanate from its utilization.