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Sustainability Assessment Using Economic Value Added

Author

Listed:
  • Miriam Jankalová

    (Faculty of Operation and Economics of Transport and Communications, University of Žilina, Univerzitná 1, 010 26 Žilina, Slovakia)

  • Jana Kurotová

    (Faculty of Operation and Economics of Transport and Communications, University of Žilina, Univerzitná 1, 010 26 Žilina, Slovakia)

Abstract

Sustainability assessments should be based on financial and non-financial indicators. To describe the financial situation of companies and to calculate the actual economic profit of a company, the Economic Value Added methodology appears as a suitable solution. The aim of the paper is to apply the Economic Value Added methodology to real-life corporate data and present the company’s value through a case study. This study is based on information that was gathered through an extensive literature review (research publications and research studies (documents) about sustainability, corporate social responsibility, Sustainable Value concept, and Economic Value Added (EVA) methodology; and the company’s financial statements with notes of the selected company) using Internet and research databases and the author’s own experience. Methods of analysis, comparison, selection, abstraction, induction, deduction, determination, and statistics were used. In addition to the positives, this evaluation method also has negatives, including limitations (problems) in measuring a company’s value.

Suggested Citation

  • Miriam Jankalová & Jana Kurotová, 2019. "Sustainability Assessment Using Economic Value Added," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:318-:d:303619
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    References listed on IDEAS

    as
    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. Miriam Jankalová & Radoslav Jankal, 2017. "The assessment of corporate social responsibility: approaches analysis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(4), pages 441-459, June.
    3. Miriam Jankalová & Radoslav Jankal, 2018. "Sustainability Assessment According to the Selected Business Excellence Models," Sustainability, MDPI, vol. 10(10), pages 1-24, October.
    4. Figge, Frank & Hahn, Tobias, 2009. "Not measuring sustainable value at all: A response to Kuosmanen and Kuosmanen," Ecological Economics, Elsevier, vol. 69(2), pages 244-249, December.
    5. Miriam Jankalová & Radoslav Jankal, 2017. "The assessment of corporate social responsibility: approaches analysis," Post-Print hal-01861040, HAL.
    6. Ang, Frederic & Van Passel, Steven, 2010. "The Sustainable Value approach: A clarifying and constructive comment," Ecological Economics, Elsevier, vol. 69(12), pages 2303-2306, October.
    7. Figge, Frank & Hahn, Tobias, 2012. "Is green and profitable sustainable? Assessing the trade-off between economic and environmental aspects," International Journal of Production Economics, Elsevier, vol. 140(1), pages 92-102.
    8. Alena Kocmanová & Marie Pavláková Dočekalová & Stanislav Škapa & Lenka Širáňová, 2016. "Measuring Corporate Sustainability and Environmental, Social, and Corporate Governance Value Added," Sustainability, MDPI, vol. 8(9), pages 1, September.
    9. 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.
    10. Figge, Frank & Hahn, Tobias, 2004. "Sustainable Value Added--measuring corporate contributions to sustainability beyond eco-efficiency," Ecological Economics, Elsevier, vol. 48(2), pages 173-187, February.
    11. Kuosmanen, Timo & Kuosmanen, Natalia, 2009. "How not to measure sustainable value (and how one might)," Ecological Economics, Elsevier, vol. 69(2), pages 235-243, December.
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