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Economic Value Added As A Modern Performance Indicator

Author

Listed:
  • Maja Ilic

    (Higher School of Professional Business Studies University of Novi Sad, Serbia)

Abstract

The qualitative information support presents a step further in the business process. Many traditional indicators of performance that have been used by the companies could not provide such support. Economic value added as an innovative approach to the measurement of business performance gives us a more realistic overview about the current state of the company. Taking into account the cost of equity and the possibility of execution of numerous accounting modifications represent significant innovations regarding to other concepts. The aim of this paper is to show practical examples of the extent to which traditional assessment of the company success may differ from the business overviewed from the perspective of economic value added.

Suggested Citation

  • 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.
    • Handle: RePEc:pdc:jrpieb:v:6:y:2010:i:3:p:94-97
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    References listed on IDEAS

    as
    1. Gérard Charreaux & Philippe Desbrières, 2001. "Corporate Governance: Stakeholder Value Versus Shareholder Value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(2), pages 107-128, June.
    2. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. 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.
    3. 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.

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    More about this item

    Keywords

    Innovative concept measuring business performance; economic value added; accounting modifications; cost of equity.;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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