Financial Performance Appraisal Using Economic Values Added in Emerging Markets: Evidence from Egyptian Listed Firms

Omneya, Abdel-Karim; Ashraf, Salah; Eldin, Bekheit Bahaa

doi:10.4236/jss.2021.93027

Cited by 4 publications

(2 citation statements)

References 16 publications

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“…The maximization of the EVA surplus generated by the company over the cost of capital employed illustrates the mechanisms of managing the company's value in the operational environment of simultaneous and multi-directional transport and logistics processes. NOPAT requires a detailed impact and sensitivity company's core operations performance analysis (Omneya et al, 2021) including revenues from the sale of services, costs and gross profit in European logistics networks.…”

Section: Gross Profitmentioning

confidence: 99%

Model of Value-Based Management in a Multi-Hub Large-Scale Logistics Network

Śliwczyński¹,

Smal²

2022

ERSJ

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Purpose:The dynamic growth of multi-channel sales (including e-commerce) causes a mass flow of cargo in supply networks and large-scale transport and logistics processes in complex multi-hub structures of logistics networks in Europe. One of the key objectives of the effective management of processes and cargo flows in complex structures of logistics networks is an increase in profitability of customer and shipment delivery. Design/Methodology/Approach: In the presented value-based management (VBM) model, multi-factor price lists for logistics services and taxation weight of shipment are the basis for revenue modelling by logistic operators, as well as their multi-criteria conditions for qualifying rates and add-on factors. On the other hand, transport and logistics processes implemented in supply chains and multi-hub network, create a complex cost environment. Findings: Dynamically and segmentally planned process loads in logistics networks according to the changing needs of customers, create complex and variable structures of direct and indirect costs of logistics operators. The allocation of costs in multi-hub logistics networks is determined by dynamic changes in the flow of cargo, through the settlement keys of resources costs used in the processes of the logistics network. Customer service quality indicators established by logistics operators are mapped to operational norms in the final settlement model. The key factor in using the value-based management model by enterprises is achieving the required operational and price competitiveness on the market of transport and logistics services with the assumed profitability of customers and services. Originality/Value: The results of the presented model analysis of the profitability of customers as well as the efficiency of processes in the logistics network influence managerial decisions shaping the appraisal of shipment contracts with customers. The VBM model presented in the article was used to verify the real costs and profitability of corporate customers in large scale multi-hub logistics network, taking into account analysis of the share and allocation of shipment flows, transport options in supply chains, as well as process routes and resource consumption.

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Section: Gross Profitmentioning

confidence: 99%

Model of Value-Based Management in a Multi-Hub Large-Scale Logistics Network

Śliwczyński¹,

Smal²

2022

ERSJ

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“…All business enterprises focus on achieving profitability; thus, including financial-related indices in performance indicators is a fundamental requirement (Omneya et al, 2021;Sun et al, 2020;Gian et al, 2019). However, other relevant indices that are derived through the evaluation of an enterprise's internal and external environment and the realization of its crucial success should also be evaluated.…”

Section: Financial Performance Of An Enterprisementioning

confidence: 99%

Exploring Performance Management in China's Family SMEs Based on Structural Equation Modelling and Back-Propagation Neural Network

Sun

Tan

Wang

et al. 2022

Journal of Global Information Management

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Because of the growing competition and challenges within the global business environment, understanding performance management has become essential to small- and medium-sized enterprises (SMEs) as they have traditionally dominated the Chinese economy. In recognition of the limited studies with a specific focus on Chinese family SMEs, this study modelled and tested performance management by analysing four factors and eighteen indicators using structural equation modelling (SEM) and back-propagation neural network (BPNN). Secondary data from the Chinese Stock Market and Accounting Research (CSMAR) database were collected for this study. The results provide a better understanding of the proposed relationships between these variables through a review of their impact and correlations. This study suggested that four factors, including financial performance, external environment, internal environment, and enterprise development potential, will significantly impact performance management.

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Predictive power of economic-based performance indicators on shareholder value: Evidence from South African listed firms

P. Maculuve,

A. Obalade

2023

Investment Management and Financial Innovations

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Financial statements are often number intensive, and determining the importance and relevance of these numbers from the perspective of investors and equity holders is paramount. However, empirical studies concerning the correlation between several accounting and economic-based indicators with shareholder returns have yielded contradictory results. Additionally, considering the relatively limited studies on economic-based indicators such as refined economic value-added and economic value-added momentum, this study evaluated the predictive power of refined economic value added, economic value-added momentum, and economic value added (economic-based indicators), along with traditional accounting-based indicators such as return on equity and earnings per share on the shareholders' returns. The study employed fixed-effect instrumental variable regression and panel quantile regression techniques to examine 49 non-financial companies listed on the Johannesburg Stock Exchange from 2007 to 2021. Overall, the results showed that economic value added is a significant negative predictor of shareholder returns, while refined economic value-added is a positive determinant. In addition, the refined economic value-added coefficient remains positive, with the impact increasing across the conditional quantiles. This study concludes that refined economic value-added provides a superior and realistic determinant of shareholder value on the Johannesburg Stock Exchange compared to other measures.

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Financial Performance Appraisal Using Economic Values Added in Emerging Markets: Evidence from Egyptian Listed Firms

Cited by 4 publications

References 16 publications

Model of Value-Based Management in a Multi-Hub Large-Scale Logistics Network

Model of Value-Based Management in a Multi-Hub Large-Scale Logistics Network

Exploring Performance Management in China's Family SMEs Based on Structural Equation Modelling and Back-Propagation Neural Network

Predictive power of economic-based performance indicators on shareholder value: Evidence from South African listed firms

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