scholarly journals Basis of economic analysis of Czech firms

2010 ◽  
Vol 58 (3) ◽  
pp. 79-84 ◽  
Author(s):  
Gabriela Chmelíková
Keyword(s):  
Financial Management ◽  
Empirical Studies ◽  
Economic Value ◽  
Value Added ◽  
Point Of View ◽  
Superior Performance ◽  
Theoretical Point ◽  
Economic Value Added ◽  
Performance Metric ◽  
Economic View

When looking for connections between particular business’s activities, theory of financial management uses pyramidal system of indicators. The effectiveness of this tool is based on the appropriate choice of the top indicator. Its decomposition enables to manage firm’s processes from the bottommost organizational levels to the main firm’s mission with respect to the connections between par­ti­cu­lar processes. The aim of this paper was to identify appropriate indicator, which corresponds with creation of firm’s value and design its decomposition. To measure creation of firm’s value it is nowadays very popular to use indicator Economic Value Added (EVA). Though from the theoretical point of view EVA is seen as a superior performance metric, the results of some empirical studies do not support this claim. That is why the information content of EVA was controlled in the concrete conditions of Czech Economy within this article. The results showed eligibility of using EVA in Czech firms and enabled to choose it as the top indicator in the pyramidal system. Ambition of further research is to design a complex of indicators offering a comprehensive economic view on the firm’s per­for­man­ce.

scholarly journals The information content of Economic Value Added of food-processing firms in the Czech Republic in the comparison with the information content of traditional performance metrics

2006 ◽  
Vol 54 (6) ◽  
pp. 77-84
Author(s):  
Gabriela Chmelíková
Keyword(s):  
Information Content ◽  
Performance Measures ◽  
Food Processing ◽  
Performance Metrics ◽  
Empirical Studies ◽  
Economic Value ◽  
Value Added ◽  
Superior Performance ◽  
Economic Value Added ◽  
Traditional Performance

The topic of this paper is motivated by the increasing popularity of Economic Value Added (EVA) and by the need to make the managing process of Czech agribusiness firms more efficient. Through adoption of EVA principle, the proponents of EVA argue, that EVA will lead to increased efficiency in the management and allocation of all assets and hence increased shareholder value. Though from the theoretical point of view EVA is seen as a superior performance metric, the results of the most empirical studies do not support this claim. One of the standard argument against EVA superiority results from the statistical survey of the relationship between EVA and traditional performance measures. Despite of the results of the most empirical studies this paper assumes (with regard to the specifics of Czech food processing sector) a difference in information content of EVA and traditional performance metrics. The intent of this article is to provide a simple regression test of the hypothesis that between EVA and traditional performance metrics is not tight linear dependency, which would point out that EVA has the same information content as traditional performance measures. The regression results indicate in all cases a positive correspondence between EVA and financial performance metrics with very low dependency of EVA on the financial metrics, which supports the examined hypothesis.

EVA Financial Management at Godrej Consumer Products Ltd

2010 ◽  
Vol 14 (01) ◽  
pp. 31-61 ◽  
Author(s):  
S. R. Vishwanath
Keyword(s):  
Financial Management ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Consumer Products ◽  
Economic Value Added ◽  
Incentive Program ◽  
Long Run

Adi Godrej, the chairman of Godrej group, has introduced an Economic Value Added (EVA) program to focus the company on long term shareholder value. The EVA program consists of three elements: EVA centers, EVA drivers and an EVA-based incentive program. The program has been successful in the initial years. The decision focus of the case is whether the program has indeed been successful in achieving its objectives in the long run.

Empirical Evidences of Value Creation from Banking Industry of India

2017 ◽  
Vol 8 (3) ◽  
pp. 45
Author(s):  
Arvind Kumar Banger ◽  
S. K. Sharma ◽  
Rahul Chaudhary
Keyword(s):  
Value Creation ◽  
Financial Management ◽  
Banking Industry ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Value Based Management ◽  
Significant Difference ◽  
Market Value Added

In wake of recent economic reforms in India with an aim of stabilizing the economy of India under the era of globalisation, banking industry has experienced a canonical shift in terms of value creation practices, methods and metrics for measuring bank’s performance. Value based management has long been hailed as the major objective of financial management of banks. A new trajectory of value based performance evaluation metrics have evolved and became an imperative of evaluating the performance of banks. The present study has been undertaken with the objective to measure the performance and value creation in the selected banks. The selected sample was taken from the public and private sector banks listed on stock exchange in India. In this study, Economic Value Added (EVA) and Market Value Added (MVA) across the selected banks were calculated based on the accounting figures and their difference was determined. The results showed significant difference between economic value added and market value added in selected banks is quite meaningful and significant.

scholarly journals FORMALIZATION OF FINANCIAL RISKS OF INDUSTRIAL ENTERPRISES IN THE CONTEXT OF VALUE MANAGEMENT ON THE BASIS OF VBM-APPROACH

2020 ◽  
pp. 72-83
Author(s):  
T. Vasilyeva ◽  
V. Boronos ◽  
Y. Humenna
Keyword(s):  
Financial Management ◽  
Industrial Development ◽  
Economic Value ◽  
Balance Sheet ◽  
Value Added ◽  
Value Management ◽  
Financial Risks ◽  
Economic Value Added ◽  
Value Based Management ◽  
Industrial Enterprises

The article is devoted to the investigation and identification of financial risks of industrial enterprises. The aim of the article is to formalize the financial risks of industrial enterprises’ activity and development in the context of the implementation of the value-based management. The modern tendencies and problems of functioning and development of the industrial enterprises of Ukraine are characterized by the following issues: deficit of the financial capital in the domestic and international markets; increasing the debts of enterprises within the real sector of the economy to a greater extent than the growth of equity is; low level of bond attraction as a source of additional financing; financing the majority of the reproduction processes of the industrial sector at the expense of own money of economic entities; monopolization of the main part of industrial production, which demotivates business entities to implement innovative activities; orientation of the sectorial structure of investments in favor of low-tech industries Based on the study of financial risks and the factors that shape them, the effects of the financial risks impact on socio-economic and financial indicators of industrial development have been defined. The financial risks that are controlled and managed by the financial management of the enterprise include non-systematic (specific) financial risks, internal risks (capital structure risks, credit and investment risks). Value-based management has been grounded as the effective system of financial management at the enterprise. The comparative analysis of the balance sheet, market and cash flow approaches within value management allows determine the balance sheet method, in particular the model of economic value added, as optimal for use in the management system of an industrial enterprise. The model of the value-based management for industrial enterprises, proposed in the work, has been built on the basis of harmonization of financial risk factors of industrial enterprises with the factors of the economic value added model. It will contribute to effective financial management of economic entities.

scholarly journals PENGARUH ECONOMIC VALUE ADDED DAN FAKTOR LAINNYA TERHADAP HARGA PASAR SAHAM

2009 ◽  
Vol 4 (1) ◽  
pp. 43
Author(s):  
Julianti Sjarief ◽  
Aruna Wirjolukito
Keyword(s):  
Financial Management ◽  
Firm Value ◽  
Stock Price ◽  
Economic Value ◽  
Value Added ◽  
Regression Method ◽  
Economic Value Added ◽  
Management Performance ◽  
Leverage Ratio ◽  
Management Perspective

<p class="Style1"><strong><em>In financial management perspective, the objective of the firm is maximizing </em></strong><strong><em>firm value that reflects wealth of the owners. Firm value, so far is acknowledge as a fine </em></strong><strong><em>parameter in measuring management performance. Acco</em></strong><strong><em>4</em></strong><strong><em>ding to many literature we </em></strong><strong><em>know before, good perfonnance will absolutely increase value of stockholders'equity After ROl become famous parameter, nowadays managers look around for better </em></strong><strong><em>measurement. EVA so far, become one of them and in many cases proved that </em></strong><strong><em>objectives. This paperexamine EVA, a new comer benchmark and tool, as measure-</em></strong><strong><em>ment of management performance that puled by stock price. In regression method </em></strong><strong><em>used, we simply find that EVA has advantage. Result from this study found that EVA </em></strong><strong><em>does better status rather than leverage ratio and ages, that reflect firms' reputation before public.</em></strong></p><p class="Style1"><strong><em>Keywords: EVA, DER, umurperusahaan, harga saham</em></strong></p>

Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Pada Nilai Perusahaan

2011 ◽  
Vol 3 (2) ◽  
pp. 1-19
Author(s):  
Chermian Eforis ◽  
Rosita Suryaningsih
Keyword(s):  
Corporate Social Responsibility ◽  
Annual Report ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Simple Regression

This study aims to determine the influence of the level of CSR disclosure in annual report to corporate values that proxies with Economic Value Added (EVA) and Market Value Added (MVA).   The objects of this study are companies that were included in Kompas 100 Edition of the second review in 2010.The chosen model of this research is simple regression which can be defined as a model that used the normal probability plot  for data normality test, DurbinWatson test for autocorrelation, graph plots to test heteroscedasticity, and saw the value of tolerance and VIF for multicollinearity test. Hypothesis is analyzed using simple regression method  The results showed that the level of CSR disclosure contained in the annual report has a significant influence on the EVA. The same results were also found on the MVA, where the level of CSR disclosure contained in the annual report has a significant influence on the MVA. Key words: Corporate Social Responsibility, Economic Value Added, Market Value Added

KOMPARASI KINERJA KEUANGAN MELALUI PENDEKATAN ECONOMIC VALUE ADDED (EVA) PADA PERUSAHAAN TRANSPORTASI DI JAKARTA

2018 ◽  
Vol 3 ◽  
pp. 223-232
Author(s):  
Dwi Urip Wardoyo
Keyword(s):  
Financial Performance ◽  
Service Industry ◽  
Economic Value ◽  
Value Added ◽  
Added Value ◽  
Economic Value Added ◽  
Test Analysis ◽  
Transportation Service ◽  
Income Statement

This study aims to compare financial performance through profitability generated by two market participants in the witness transportation service industry in Jakarta, namely PT. BB compared to PT. ETU, this assessment is measured not limited to the profit generated but more than that by measuring financial added value through the concept of Eonomic Value Added produced by the two companies. The population in this study were all taxi transportation service companies in Jakarta. The sampling method selected two taxi companies that have the largest market share in DKI Jakarta, namely BB Taxi and ETU Taxi. The test analysis used in this study is ratio analysis through profit calculation and economic added value from the annual income statement. This study shows that there are (a) determination of the ratio of profit levels, (b) Determination of the comparison of economic value added of the two companies. Keywords :  Financial performance, Economic Value Added (EVA)

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