scholarly journals Performance Management for Growth: A Framework Based on EVA

2021 ◽  
Vol 14 (3) ◽  
pp. 102
Author(s):  
Mihaela Brindusa Tudose ◽  
Valentina Diana Rusu ◽  
Silvia Avasilcai
Keyword(s):  
Statistical Analysis ◽  
Performance Management ◽  
Performance Appraisal ◽  
Business Performance ◽  
Reference Model ◽  
Corporate Sustainability ◽  
Economic Value ◽  
Value Added ◽  
Research Perspectives

Some of the constructs in the field of performance management are intuitive or not empirically validated. This study provides a data-driven framework for measuring and improving the performance through synchronized strategies. The ultimate goal was to provide support for increasing business performance. Empirical research materializes in an exploratory case study and a statistical analysis with econometric models. The case study revealed that a company can improve its performance, even in periods of growth, being characterized by consistent investments. The statistical analysis, performed on a restricted sample of companies, confirmed the results that were provided by the case study. The measurement of performance was made by capitalizing on financial and non-financial data precisely to intensify the interest for corporate sustainability. The obtained results, contrary to previous research that showed that economic value added (EVA) is negatively influenced by the increase in invested capital, open up new research perspectives to find out whether, at the industry level, performance appraisal that is based on EVA stimulates the development of a business’s economic capital. The research has a double utility: scientific (by providing an overview of the state of the art in the field of performance management) and practical (by providing a reference model for measuring and monitoring performance).

scholarly journals The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA)

2021 ◽  
Vol 13 (6) ◽  
pp. 3075
Author(s):  
Miguel Ángel Martín Valmayor ◽  
Beatriz Duarte Monedero ◽  
Luis A. Gil-Alana
Keyword(s):  
Annual Report ◽  
Economic Value ◽  
Balance Sheet ◽  
Value Added ◽  
Social Value ◽  
Economic Value Added ◽  
The Social ◽  
Social Balance ◽  
Corporate Social

In this paper, we examine the concept of the social balance sheet (SBS) and its evolution in corporate social reports that large companies have to issue today in their yearly statements. The SBS allows companies to evaluate their compliance with corporate social responsibility during a specific period and quantify its level of accomplishment. From a methodological perspective, this research analyzed the information that should be contained in the SBS report comparing economic value added (EVA) with other social value added statements (SVA), analyzing also in detail the case of Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) bank as one of the pioneers in offering social reports. Along with this study, their metrics following EVA were recalculated and a more academic SVA statement was proposed for this specific case.

scholarly journals Evaluating Business Performance and Efficiency in the Medical Tourism: A Multi-criteria Approach

2021 ◽  
Vol 12 (22) ◽  
pp. 198-221
Author(s):  
Veronika Čabinová ◽  
Peter Gallo ◽  
Petra Pártlová ◽  
Jan Dobrovic ◽  
Milan Stoch
Keyword(s):  
Business Performance ◽  
Medical Tourism ◽  
Rating Scale ◽  
Economic Value ◽  
Value Added ◽  
Three Dimensions ◽  
Financial Situation ◽  
Multi Criteria Evaluation ◽  
Management Concepts ◽  
Tourism Enterprises

Measuring the performance and efficiency of the tourism enterprises is essential regarding the current pandemic situation. In such a context, improving their financial situation and competitive position also depend on the use of innovative multi-criteria evaluation models. The paper's main objective is to propose the newly designed Performance & Efficiency model (P&E model) for Slovak spa enterprises. Its structure consists of three dimensions – P&E_I, P&E_II, P&E_III. The application of Confirmatory Factor Analysis validates 34 key performance ratios reflecting the financial situation of enterprises within the P&E_I. In case of P&E_II, the development of value-added dynamics is measured by using the Economic Value Added Momentum. Using the Data Envelopment Analysis, the level of enterprise efficiency is quantified (P&E_III). The partial results of the dimensions are transformed using min-max normalization to the overall score ranging from 0 to 3. Based on the results, a rating scale of all enterprises is carried out, and both their partial and overall positions are assessed through benchmarking. During the research (2013 – 2018), the best results are achieved for SE03 (Spa Bojnice, Inc.), SE21 (Specialised Spa Institute Marína, s.e.), and SE18 (Spa Horný Smokovec, Ltd.). The worst-rated spa enterprises include SE14 (Natural Iodine Spa Číž, Inc.), SE09 (Spa Sliač, Inc.), and SE19 (Pieniny Resort, Ltd.). The proposed P&E model is easily applicable to other tourism enterprises. The research as carried out enables deepening of knowledge concerning the multi-criteria evaluation and management concepts and helps enterprises overcome current unfavorable situations.

Siemens' Value-Driver Tree in Digitalization

2021 ◽  
pp. 197-220
Author(s):  
Cozmiuc Claudia Diana
Keyword(s):  
Value Creation ◽  
Business Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Sufficient Data ◽  
Product Lifecycle ◽  
Open Networks ◽  
Start Ups

This chapter is a descriptive and explicative case study about value creation at Siemens in an uncertain and in a certain environment. Siemens has implemented economic value-added-based management since 1998. The empirical data analysis highlights value creation at Siemens at the beginning of the innovation lifecycle, when the environment is uncertain, and at the end of the innovation lifecycle, when contracts are signed, and the environment becomes predictable. Innovation is first placed in open networks, in which start-ups are essential, to which venture capital is allocated using business models. This is the ideation stage of the product lifecycle, when competitive advantage, the essence of value creation in both theory and the Siemens example, is created. Innovation matures, and Siemens closes contracts with customers about existing customer offerings. These contracts are managed as projects and funded with equity and debt. This is the stage when sufficient data exists to plan economic value added, the focus of Siemens' corporate governance.

The Journey From Development to Appraisal

2019 ◽  
pp. 327-342
Author(s):  
Tracy M. Maylett
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Performance Measures ◽  
Past Performance ◽  
360 Feedback ◽  
Objective Performance ◽  
Objective Performance Measures ◽  
Performance Appraisal Process ◽  
Measures Of Performance

This case study describes an initiative to change a long-standing performance management process at a large manufacturing facility within General Mills that emphasized the attainment of objective performance measures (the “what” of performance) to one that also included the “how” of goal achievement. The organization embarked on a 3-year pilot evaluation of the use of 360 Feedback as a possible solution to replace or supplement their traditional single-source (supervisor) performance appraisal process. The two systems ran in parallel using 140 randomly selected employees. Results showed little correlation between the what measures of performance from the traditional appraisals and the how data collected using the 360 Feedback, supporting the view that job performance should be viewed as requiring both aspects of evaluation, using different methods of assessment. Ultimately, the organization maintained both systems but integrated 360 Feedback into the traditional appraisals as well, creating complementary processes that looked “forward” (development) and “past” (performance).

Financial Behaviour in a Mandatory Conversion Process: Empirical Evidence from Colombia

2020 ◽  
pp. 097215092096400
Author(s):  
Juan David González-Ruiz ◽  
Maria Isabel Acosta-García ◽  
Ramón Villa-García
Keyword(s):  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
Convertible Bonds ◽  
Economic Value Added ◽  
Operating Profit ◽  
Financing Costs ◽  
Financial Behaviour ◽  
A Company

Convertible bonds are attractive because they offer alternatives for both issuers and investors. Therefore, several companies have used this financial mechanism to raise capital. Although several studies have been published on this topic, mandatory convertible bonds (MCBs), which are subsets of convertible bonds, and their effect on economic value added (EVA) have not been explored deeply. This study analyses what happens to the EVA before, during and after the issuance when investors are involved as shareholders of a company issuing MCBs. A Colombian company is used as a case study. The results reveal that one of the main reasons behind the change in the EVA is not only the weighted average cost of capital or the invested capital but also the operating profit. The net operating profit after tax (NOPAT) depends on operating profit. Therefore, to generate a positive EVA, the NOPAT margin needs to be higher than the margin of financing costs.

scholarly journals Disclosure of Social-Economic Value in the Social Enterprise. Stimuli from an Italian Multiple Case Study

2020 ◽  
Vol 13 (6) ◽  
pp. 53
Author(s):  
Antonietta Cosentino
Keyword(s):  
Economic System ◽  
Economic Value ◽  
Multiple Case Study ◽  
Value Added ◽  
Well Being ◽  
Social Enterprises ◽  
Social Value ◽  
The Social ◽  
Multiple Case

The growing interest in the financial, social and environmental sustainability of all organizations as a whole, as well as the growing sentiment for their responsibility towards the community, lead organizations to face the challenge of evaluating and communicating their non-financial performance through the social accounting. The issue assumes a peculiar meaning within social enterprises (SEs) aimed at pursuing the general interest. In these organizations, the disclosure of the value created for both internal and social stakeholder raises to rank of survival condition because the development, reputation and credibility of the SEs are closely linked to the institution's ability to reach and communicate externally the social value created. This work aims to highlight the peculiar resources of the SEs and demonstrate that, in most cases, they allow SEs to achieve financial sustainability. Social and economic value will be assessed and the share of income that cannot be distributed, regardless of the relevant regulatory provisions, will be emphasized. To achieve these goals, a multiple case study is used to measure the value added distributed to internal and external stakeholders by adapting Mook model to SEs. The results show that volunteering and donations contribute not only to the social value generated by SEs but to their economic sustainability as well, being considered as the engine of development of the economic system as a whole. This paper contributes to the literature by focusing on the contribution of liberalities and volunteering to consolidate the financial structure of the SE and to development of the economic system as a whole.

scholarly journals ANALISIS KINERJA KOPERASI DAN DAN DAMPAKNYA TERHADAP KESEJAHTERAAN ANGGOTA (Studi Pada Koperasi Usaha Manunggal Desa Seresam Kecamatan Seberida Kabupaten Indragiri Hulu)

2019 ◽  
Vol 8 (2) ◽  
pp. 244-256
Author(s):  
Aris Triyono ◽  
Suwaji Suwaji ◽  
Marwan Indra Saputra
Keyword(s):  
Business Performance ◽  
Family Income ◽  
Positive Impact ◽  
Descriptive Analysis ◽  
Economic Value ◽  
Value Added ◽  
Secondary Data ◽  
Added Value ◽  
Primary Data ◽  
Access To Credit

Cooperatives are not only expected to be able to produce residual business results in each period, investment activities carried out by cooperatives must be effective in producing positive added value, therefore cooperatives need to be managed as well as possible so that they can grow into a strong and independent organization, with the best performance and ability raise the welfare of its members. This research is in Kopsa. Manunggal Enterprises, Seresam Village, Seberida District, Indragiri Hulu Regency, Riau Province. The purpose of this research is to find out and analyze Cooperative Performance and Its Impact on Members' Welfare. This study used a quantitative descriptive approach, the data the authors use are primary and secondary data, primary data obtained through questionnaires distributed to research respondents to measure Cooperative Performance and Members' Welfare Levels, and secondary data obtained directly from Kopsa. Manunggal Enterprises in the form of financial statement documents. The analytical tool used to measure / assess financial performance with the viewpoint of Economic Value Added (EVA. Cooperative Performance is measured based on 6 (six) indicators of Cooperative Performance, namely: Business Entity Activities, Business Performance, Members' Cohesiveness and Participation, Orientation to Member Services, Services to the Community and contribution to Regional Development Welfare level is measured based on aspects of family income, expenditure on consumption, employment status, health conditions and the ability to access other basic needs.The results of descriptive analysis show Kopsa. Manunggal Enterprises including Cooperatives that are performing well, households Farmers who are members of Kopsa, Manunggal Enterprises are included in the welfare category and the regression analysis conducted shows that the regression coefficient is positive, meaning that there is a positive impact between Cooperative Performance and Welfare. The better the Cooperative Performance will have a positive impact on increasing yes the welfare of members, this can happen because of the monoculture community farming patterns where the main source of income of the village community, especially Kopsa members. Manunggal Business is a commodity of oil palm plantations managed by cooperatives, so the cooperative performance variable becomes very influential in influencing the ease of service, distribution of member income, access to credit and other ease of convenience.

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