IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2013v5p64-84.html
   My bibliography  Save this article

PERFORMANCE TREND AND PERFORMANCE CURRENT RATINGS BY ECONOMIC VALUE ADDED (EVA) Abstract: The Economic Value Added (EVA) is an index of „durable development.” It was proposed by the Stern-Stewart Office and represents the true economic profit of companies. A company reports economic profit only if the reported accounting profit is higher than the opportunity cost of equity. The authors of the EVA model (Stern-Stewart) have also proposed the ways of restating the financial statements to get a “fair image” of the results, thus eliminating the “accounting distortions.” Based on the performance indexes calculated based on EVA and second-generation indexes relating to EVA, we calculated two types of rating: Rating Performance Current and Rating Performance Trend. The rating is calculated by means of the percentiles technique and the results are split into 22 rating classes. The used database is Russell 3000

Author

Listed:
  • ALEXANDRU BOGEANU Author-Workplace-Name: The Bucharest University of Economic Studies
  • ELENA CLAUDIA SERBAN Author-Workplace-Name: The Bucharest University of Economic Studies
  • VASILE ROBU Author-Workplace-Name: The Bucharest University of Economic Studies

Abstract

No abstract is available for this item.

Suggested Citation

  • ALEXANDRU BOGEANU Author-Workplace-Name: The Bucharest University of Economic Studies & ELENA CLAUDIA SERBAN Author-Workplace-Name: The Bucharest University of Economic Studies & VASILE ROBU Author-Wo, 2013. "PERFORMANCE TREND AND PERFORMANCE CURRENT RATINGS BY ECONOMIC VALUE ADDED (EVA) Abstract: The Economic Value Added (EVA) is an index of „durable development.” It was proposed by the Stern-Stewart Offi," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 64-84, October.
    • Handle: RePEc:cbu:jrnlec:y:2013:v:5:p:64-84
    as

    Download full text from publisher

    File URL: http://www.utgjiu.ro/revista/ec/pdf/2013-05/10_Bogeanu.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert T. Kleiman, 1999. "Some New Evidence On Eva Companies," Journal of Applied Corporate Finance, Morgan Stanley, vol. 12(2), pages 80-91, June.
    2. Ahmad Ismail, 2006. "Is economic value added more associated with stock return than accounting earnings? The UK evidence," International Journal of Managerial Finance, Emerald Group Publishing, vol. 2(4), pages 343-353, September.
    3. Young, David, 1997. "Economic value added: A primer for European managers," European Management Journal, Elsevier, vol. 15(4), pages 335-343, August.
    4. Andrew C. Worthington & Tracey West, 2004. "Australian Evidence Concerning the Information Content of Economic Value-Added," Australian Journal of Management, Australian School of Business, vol. 29(2), pages 201-223, December.
    5. G. Bennett Stewart, 1994. "Eva™: Fast And Fantasy," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(2), pages 71-84, June.
    6. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
    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. Ashita Agrawal & Pitabas Mohanty & Navindra Kumar Totala, 2019. "Does EVA Beat ROA and ROE in Explaining the Stock Returns in Indian Scenario? An Evidence Using Mixed Effects Panel Data Regression Model," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(2), pages 103-134, May.
    2. Andrew Worthington & Tracey West, 2000. "A Review and Synthesis of the Economic Value-Added Literature," School of Economics and Finance Discussion Papers and Working Papers Series 075, School of Economics and Finance, Queensland University of Technology.
    3. Rainer Lueg & Jon Svennesen Toft, 2022. "Earnings Less Risk-Free Interest Charge (ERIC) and Stock Returns—A Value-Based Management Perspective on ERIC’s Relative and Incremental Information Content," JRFM, MDPI, vol. 15(8), pages 1-21, August.
    4. Ahmed Magdy Fayed & Suchi Dubey, 2016. "An Empirical Study of Impact of EVA Momentum on the Shareholders Value Creation as Compared to Traditional Financial Performance Measures ¨C With Special Reference to the UAE," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 23-38, May.
    5. Sujata Behera, 2021. "Does EVA valuation model outperform earnings valuation model in explaining market value of equity?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6312-6337, October.
    6. Ahmadyan , Azam & Khansari , Rasool, 2018. "Application of Economic Value Added in the Banking Sector of Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 13(3), pages 291-318, July.
    7. Manju Tripathi & Smita Kashiramka & P. K. Jain, 2018. "Flexibility in Measuring Corporate Financial Performance, EVA Versus Conventional Earnings Measures: Evidences from India and China," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(2), pages 123-138, June.
    8. Zbysław Dobrowolski & Grzegorz Drozdowski & Mirela Panait & Arkadiusz Babczuk, 2022. "Can the Economic Value Added Be Used as the Universal Financial Metric?," Sustainability, MDPI, vol. 14(5), pages 1-14, March.
    9. Phillips, Paul & Moutinho, Luiz, 2014. "Critical review of strategic planning research in hospitality and tourism," Annals of Tourism Research, Elsevier, vol. 48(C), pages 96-120.
    10. Ilkka Sillanpää & Sebastian Sillanpää, 2014. "Supply Chain Strategy: Empirical Case Study in Europe and Asia," Management, University of Primorska, Faculty of Management Koper, vol. 9(2), pages 95-115.
    11. Hutzschenreuter, Thomas & Horstkotte, Julian, 2013. "Performance effects of international expansion processes: The moderating role of top management team experiences," International Business Review, Elsevier, vol. 22(1), pages 259-277.
    12. Su Han, 2024. "Bridging Passion and Performance: The Mediating Role of Improvisation Behavior in New Startup Ventures," International Journal of Science and Business, IJSAB International, vol. 38(1), pages 76-98.
    13. Tracey West & Andrew Worthington, 1999. "The information content of economic value-added: A comparative analysis with earnings, cash flow and residual income," School of Economics and Finance Discussion Papers and Working Papers Series 066, School of Economics and Finance, Queensland University of Technology.
    14. Haarhaus, Tim & Liening, Andreas, 2020. "Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    15. Charles E. Hyde, 2018. "The Piotroski F†score: evidence from Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(2), pages 423-444, June.
    16. Maria Luisa Giancaspro & Antonino Callea & Amelia Manuti, 2022. "“I Like It like That”: A Study on the Relationship between Psychological Capital, Work Engagement and Extra-Role Behavior," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    17. Riccardo Vecchiato & Giampiero Favato & Francesco di Maddaloni & Hang Do, 2020. "Foresight, cognition, and long‐term performance: Insights from the automotive industry and opportunities for future research," Futures & Foresight Science, John Wiley & Sons, vol. 2(1), March.
    18. Ali Naef Mohammad, 2016. "Valuation Tools for Determining the Value of Assets: A Literature Review," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 63-72, October.
    19. Mbalyohere, Charles & Lawton, Thomas & Boojihawon, Roshan & Viney, Howard, 2017. "Corporate political activity and location-based advantage: MNE responses to institutional transformation in Uganda’s electricity industry," Journal of World Business, Elsevier, vol. 52(6), pages 743-759.
    20. Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2018. "Entrepreneurs' improvisational behavior and new venture performance: Firm-level and institutional contingencies," Journal of Business Research, Elsevier, vol. 83(C), pages 10-18.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:2013:v:5:p:64-84. 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 The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (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.