Economic Value Added vs Firm Performance

Yusbardini, Review Economic Value Added vs Firm Performance. Economic Value Added vs Firm Performance.


Download (61kB) | Preview


This study is comparing the relative terms of information content, incremental information content of accounting models and discounting cash flow models. Where the model is represented by the accounting operating profit (OP) and net income (NI), while discounting cash flow models represented by one of the methods of assessment in value based management system that is market value added (MVA) and economic value added (EVA). The purpose of this study is to test empirically the relative information content of EVA variables, OP and NI of the MVA and the additional content of the information contained on EVA, OP, NI against MVA. Penelitian was conducted on 18 companies going public are included in the consumer goods industry. The analytical tool used in this research is the pool least square regression between the dependent variables and independent variable. The results based on the relative information content shows that EVA is able to explain MVA better in compared with NI and OP while based on incremental information content, NI can explain changes in EVA and MVA in comparision with OP. Finally, the results of this study proved that EVA is not the best measurmen of performance.

Item Type: Article
Subjects: Penelitian > Fakultas Ekonomi
Divisions: Fakultas Ekonomi > Manajemen
Depositing User: Puskom untar untar
Date Deposited: 08 Dec 2020 12:29
Last Modified: 08 Dec 2020 12:29

Actions (login required)

View Item View Item