Economic Value Added: Corporate Performance Measurement Tool
Corporate Board, Volume 11(1), 2015
12 Pages Posted: 19 May 2015
Date Written: April 1, 2015
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: Suggested Citation