Economic Value Added: Corporate Performance Measurement Tool

Corporate Board, Volume 11(1), 2015

12 Pages Posted: 19 May 2015

See all articles by Reeta Shah

Reeta Shah

SJMSOM, IIT Bombay

Arunima Haldar

S.P. Jain Institute of Management and Research

S.V.D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM)

Date Written: April 1, 2015

Abstract

Performance measurement matters in today’s complex business arena irrespective of the type, nature, and volume diversity in business. If the result of the performance measurement goes wrong due to the faulty or inaccurate selection of tool(s), then the total process will prove wrong in due time hence an attempt to evaluate Economic Value Added (EVA) as an alternative to traditional performance measure. Generally, it is believed that EVA is truly designed for large companies and is the best performance measure. The possible advantages, opportunities and limitations of using EVA as a performance measurement tool is discussed that may encourage the users/readers to incorporate EVA with their current setup to reap the potential benefits from it.

Keywords: Economic Value Added, Corporate Performance

JEL Classification: G3, G30

Suggested Citation

Shah, Reeta and Haldar, Arunima and Nageswara Rao, S. V. D., Economic Value Added: Corporate Performance Measurement Tool (April 1, 2015). Corporate Board, Volume 11(1), 2015, Available at SSRN: https://ssrn.com/abstract=2607437

Reeta Shah

SJMSOM, IIT Bombay ( email )

Powai
Mumbai, Maharashtra 400076
India

Arunima Haldar (Contact Author)

S.P. Jain Institute of Management and Research ( email )

Munshi Nagar, Dadabhai Road
Andheri West
Mumbai, Maharashtra 119579
India

S. V. D. Nageswara Rao

Indian Institute of Technology (IIT), Bombay - Shailesh J. Mehta School of Management (SJM) ( email )

Powai
Mumbai 400076
India
91-22-25767789 (Phone)
91-22-25722872 (Fax)

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