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Economic Value Added (EVA) as an Indicator for Financial Decisions

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  • Cristina Mihaela ONICA

    (Dunarea de Jos University of Galati, Romania)

Abstract

The economic added value is an indicator that represents a performance measurement of the real economic profit obtained by a company, which allows to predict the company’s success or failure over a certain period of time. The use of EVA in the measurement of a company’s financial and economic performances is considered to be better due to the fact that it offers a basis for a comparison between companies, by taking into account both the cost of capital and the company’s degree of risk. The study of economic value became a widely debated issue nowadays because the main objective of any company is maximizing shareholders’profits.

Suggested Citation

  • Cristina Mihaela ONICA, 2019. "Economic Value Added (EVA) as an Indicator for Financial Decisions," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 149-156.
  • Handle: RePEc:ddj:fseeai:y:2019:i:3:p:149-156
    DOI: https://doi.org/10.35219/eai1584040967
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    References listed on IDEAS

    as
    1. Radu Riana Iren, 2010. "The Analysis of Financial Conditions Imposed by Banks for the Approval of Long Term Credits Requested by Economical Agents," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 684-687, October.
    2. Riana Iren RADU, 2011. "Econometric Model – A Tool in Financial Management," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 49-54.
    Full references (including those not matched with items on IDEAS)

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