Methodical Motivation of the Using EVA (Economic Value Added) as Instrument of Cost-Performance Management in Organizations

Limarev, P. V.; Limarevа, Yulia A.; Zinovyeva, E. G.; Usmanova, Elena G.

doi:10.5901/mjss.2015.v6n5s2p489

Cited by 2 publications

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“…Vijayakumar (2012) realised an empirical analysis of the Indian automobile industry focused on calculating EVA and other accounting performance indicators. Research by Limarev et al (2015) describes the methodical motivation of the using EVA indicator as an instrument of cost-performance management in organisations. The research study by Gavurová et al (2018) provides an application of the Data Envelopment Analysis (DEA) approach to measure the environmental performance in OECD countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

2022

AMS

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The traditional methods used in the past to assess the benefits of foreign direct investments (FDI) are no longer applicable. The presented study deals with the issue of increasing the potential of the renewable natural resources mining industries and increasing its efficiency and competitiveness through the specific methodology of industries performance measurement and diagnostic of the effects of FDI. The objective of the research was to analyse FDI in Slovakia and other countries of the Visegrad Four, identify significant measurable effects of the FDI impact on the development of the wood, paper and furniture sector in Slovakia as well as quantify the economic performance of given industries based on the EVA model. Appropriate mathematical and statistical methods were used in the research of interdependencies between quantitative variables. In two-dimensional inductive statistics, we applied correlation and linear regression analysis and analysis of variance (ANOVA). The results of the research should support investment decision-making in business and industry investment strategy to aim for the economic development of the renewable natural resources mining industries. Simultaneously, we offer a new methodology for evaluating the potential and economic performance of other Slovak mining industries, other post-communist European countries, and potential investors worldwide.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

2022

AMS

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“…The application of the EVA model for determining the allocation of capital is in line with the basic aims of an organization, i.e., to only undertake projects that are able to generate certain value for a business [18]. In other words, the indicator rates the change in the market value of a business as a result of their business activities in the market [19]. The real accounting earnings of a business should be used instead of modified operating income for the exact calculation of EVA [20].…”

Section: Literature Reviewmentioning

confidence: 99%

Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity

et al. 2020

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The contribution deals with the economic value added and its influence on credit absorption capacity. The aim was to determine the significance of the difference between the economic value added (EVA) entity and EVA equity indicators on credit absorption by the construction sector in the Czech Republic. The data came from the Albertina database of Bisnode Czech Republic for the period 2012–2018; small and medium-sized enterprises, in particular, were selected. The most important factor for calculating the amount of credit absorption depends on the EVA entity indicator and the weighted average cost of capital. The calculations produced negative values for credit absorption, which reflects an unattractive investment climate for business owners and their creditors. In other words, loans sought by enterprises in the Czech construction sector do not lead to a greater degree of realization of their goals, i.e., an increase in value for shareholders.

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Methodical Motivation of the Using EVA (Economic Value Added) as Instrument of Cost-Performance Management in Organizations

Abstract: Transition to firm economic development is connected with decision of microeconomics problems -increasing

Cited by 2 publications

References 1 publication

Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity

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