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The Process of Creating Economic Value Added: Causes, Factors and Implications

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  • Roxana Arabela Dumitrascu

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Abstract

The economic value added is formed under the influence of two major factors: the difference between the economic profitability and the weighted average cost of capital, called the rate of economic value generation and the value of the economic asset exploited by the company. To stimulate the process of creation of economic value added, the company must act in the sense of increasing the rate of economic value generation and development of the volume of the economic asset.

Suggested Citation

  • Roxana Arabela Dumitrascu, 2014. "The Process of Creating Economic Value Added: Causes, Factors and Implications," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 30-33, March.
  • Handle: RePEc:khe:journl:v:6:y:2014:i:1:p:30-33
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    More about this item

    Keywords

    Economic rate of return; weighted average cost of capitals; economic asset; elasticity; intensive and extensive factors of development;

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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