IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2017v1p181-190.html
   My bibliography  Save this article

The Analysis Of The Performance Of Companies Based On The Economic Value Added

Author

Listed:
  • MIRON VASILE CRISTIAN IOACHIM

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

  • FOCSAN ELEONORA IONELA

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

Abstract

The economic added value is a key indicator in the analysis of the performance of economic entities. The study of this concept is the result of assumptions and premises that represent the basis for formulating the main goals that we set to achieve. The central objective of the analysis is to demonstrate that the classical method of analysis based on economic added value is a perfectible one. To achieve this objective, the analysis was divided into several sub-objectives: a theoretical approach that had the aim of presenting the current state of knowledge in the field of the analysis based on economic added value, and an empirical approach. The empirical approach pursued to the analysis of a company from the Romanian energy sector based on the economic added value, and aimed to propose an alternative to the classical method of analysis based on economic added value. Results of the analysis showed that the concept of economic added value is perfectible and adaptable to different informational needs of the stakeholders, but have raised some limitations that may be encountered when analyzing performance based on economic added value.

Suggested Citation

  • Miron Vasile Cristian Ioachim & Focsan Eleonora Ionela, 2017. "The Analysis Of The Performance Of Companies Based On The Economic Value Added," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 181-190, February.
    • Handle: RePEc:cbu:jrnlec:y:2017:v:1:p:181-190
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2017-01/27_Miron,%20Focsan.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James Brown, 2006. "What's significant in Value Based Management: an internal perspective," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 3(3), pages 320-340.
    2. Madan Lal Bhasin & Junaid M. Shaikh, 2013. "Economic value added and shareholders' wealth creation: the portrait of a developing Asian country," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 5(2), pages 107-137.
    3. Timothy Rodgers, 2007. "Measuring Value Added in Higher Education: A Proposed Methodology for Developing a Performance Indicator Based on the Economic Value Added to Graduates," Education Economics, Taylor & Francis Journals, vol. 15(1), pages 55-74.
    4. Lala-Popa Ion & Anis Cecilia-Nicoleta, 2010. "Some Aspects Regarding The Performance Indicators Used In The Management Of A Company," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 450-455, December.
    5. Khadija Mnasri & Ezzeddine Abaoub, 2011. "Measuring shareholder value in Tunisian banking," Post-Print hal-02999671, HAL.
    6. Neculai Tabara & Andreea Vasiliu, 2013. "Determinants Of Economic Value Added.Empirical Evidence From Romanian Market," EuroEconomica, Danubius University of Galati, issue 1(32), pages 5-15, May.
    7. Laura VASILESCU, 2011. "Assessing the firm performance through the financial ratios," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 159-166, September.
    8. R.K. Mittal & Neena Sinha & Archana Singh, 2008. "Challenges of Implementing Economic Value Added," Global Business Review, International Management Institute, vol. 9(2), pages 287-298, August.
    9. Ilic, Maja, 2010. "Economic value added as a modern performance indicator," Perspectives of Innovations, Economics and Business (PIEB), Prague Development Center (PRADEC), vol. 6(3), pages 1-4, October.
    10. Ignacio Velez-Pareja, 2001. "Economic Value Measurement: Investment Recovery and Value Added - IRVA," Proyecciones Financieras y Valoración 2404, Master Consultores.
    11. Stoyu I. Ivanov & Kenneth Leong & Janis K. Zaima, 2014. "An Empirical Examination of Negative Economic Value Added Firms," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(1), pages 103-112.
    12. Maja Ilic, 2010. "Economic Value Added As A Modern Performance Indicator," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 6(3), pages 94-97, October.
    13. Silvia Petrescu & Ciprian Apostol, 2009. "Value Creation Analysis. Economic Value Added," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 5(05(534)(s), pages 118-123, May.
    14. Asish K. Bhattacharya & B.V. Phani, 2005. "Economic Value Added --- A General Perspective," Finance 0504003, University Library of Munich, Germany.
    15. Laura VASILESCU & Ana POPA, 2011. "Economic Value Added: Pros and Cons," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(13), pages 60-65, December.
    16. Khadija Mnasri & Ezzeddine Abaoub, 2011. "Measuring shareholder value in Tunisian banking," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 7(1/2), pages 120-149.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daraban Marius Costin, 2017. "Economic Value Added – A General Review of the Concept," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 168-173, June.
    2. Christy FLORENCE & Yanuar Nanok SOENARNO, 2022. "Healthcare Companies Performance before and during Covid-19: Empirical Evidence from 150 companies in Indonesia, Malaysia, and Singapore," Business & Management Compass, University of Economics Varna, issue 1-2, pages 91-106.
    3. Constantin Căruntu & Mihaela Loredana Lăpăduși, 2012. "Methods Used in Determining the Value Added Used in the Assesment of the Company’s Real Economic Power," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(1), pages 33-48.
    4. Andreea-Gabriela BALTAC & Zoica DINCA (NICOLA), 2016. "Model for estimating Financial Results at Company Level by using Simple Linear Regression," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(1), pages 70-76, January.
    5. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    6. Merugu Venugopal & Bhanu Prakash Sharma G. & Ravindar Reddy M., 2018. "Impact of Capital Structure on Shareholder Value in Indian Pharmaceutical Industry: An Empirical Approach Through Created Shareholder Value," Global Business Review, International Management Institute, vol. 19(5), pages 1290-1302, October.
    7. Ali Ihsan Akgun & Famil Samiloglu & Ali Osman Oztop, 2018. "The Impact of Profitability on Market Value Added: Evidence from Turkish Informatics and Technology Firms," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 105-112.
    8. abbas, asad, 2024. "Robotic Process Automation (RPA) and AI in Business Process Optimization," OSF Preprints hwtye, Center for Open Science.
    9. Miriam Jankalová & Jana Kurotová, 2019. "Sustainability Assessment Using Economic Value Added," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    10. Hanan Ali Al-Awawdeh & Sa¡¯ad Abdul Kareem Al-Sakini, 2018. "The Impact of Economic Value Added, Market Value Added and Traditional Accounting Measures on Shareholders¡¯ Value: Evidence from Jordanian Commercial Banks," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(10), pages 1-40, October.
    11. Singh, Devesh & Gál, Zoltán & Huseynov, Raqif & Wojtaszek, Michał, 2018. "Determining the Performance Measurement of SME from Economic Value Added: Study on Hungary, Somogy County," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 18(33, Part ), June.
    12. Anca Munteanu & Petre Brezeanu, 2012. "Between Parcimony and Complexity: Comparing Performance Measures for Romanian Banking Institutions," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(1), pages 225-232.
    13. Teodora Maria SUCIU, 2022. "Modern Model For Analysis Of Performance In Romanian Clothing Industry Based On Economic Value Added," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 7(2), pages 17-26.
    14. Sliman S. Alsoboa, 2017. "The Influence of Economic Value Added and Return on Assets on Created Shareholders Value: A Comparative Study in Jordanian Public Industrial Firms," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 63-78, April.
    15. Raquel Lopes Oliveira & Liliane Dolores Fagundes & Renato da Silva Lima & Marcelo Montaño, 2020. "Discrete event simulation to aid decision-making and mitigation in solid waste management," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 67-85, January.
    16. Georgi Lachov, 2008. "Evaluation of Corporative Value in Case of Insecurity: Determinants and Models," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 89-106.
    17. Roberto Ghiselli Ricci & Carlo Alberto Magni, 2014. "Axiomatization of residual income and generation of financial securities," Quantitative Finance, Taylor & Francis Journals, vol. 14(7), pages 1257-1271, July.
    18. Nicolae Sichigea & Laura Vasilescu, 2015. "Economic Value Added And Market Value Added - Modern Indicators For Assessment The Firm’S Value," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 488-493, December.
    19. Nicolae Sichigea & Laura Vasilescu, 2015. "Economic Value Added And Market Value Added - Modern Indicators For Assessment The Firm’S Value," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 488-493, December.
    20. Cunha, Jesse M. & Miller, Trey, 2014. "Measuring value-added in higher education: Possibilities and limitations in the use of administrative data," Economics of Education Review, Elsevier, vol. 42(C), pages 64-77.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2017:v:1:p:181-190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.