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Corporate Governance and Economic Value Alignment

Author

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  • Gerald Lander
  • Alan Reinstein

Abstract

As a result of recent problems with corporate reporting and management, renewed interest in Corporate Governance has arisen. We analyze economic value alignment as a form of Corporate Governance, a concept similar to but more encompassing than economic value added and value-based management. We look at some specific ways that various companies and industries have applied economic value added analysis. The results show that the companies that use economic value alignment increase their value significantly over those that do not. The results show that discriminating investors and management should demand that their associated companies use EVA to improve overall financial reporting and to better manage assets. In turn, the SEC and Accounting Standard Setting Bodies should consider the long-term benefits of requiring certain sized companies to report relevant EVA data to key stakeholders. Copyright International Atlantic Economic Society 2005

Suggested Citation

  • Gerald Lander & Alan Reinstein, 2005. "Corporate Governance and Economic Value Alignment," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(4), pages 433-447, November.
  • Handle: RePEc:kap:iaecre:v:11:y:2005:i:4:p:433-447:10.1007/s11294-005-2287-3
    DOI: 10.1007/s11294-005-2287-3
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    Cited by:

    1. Adel Elgharbawy & Magdy Abdel-Kader, 2013. "Enterprise governance and value-based management: a theoretical contingency framework," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 99-129, February.
    2. Leo Vashkor Dewri, 2022. "A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2718-2759, December.

    More about this item

    Keywords

    F49;

    JEL classification:

    • F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other

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