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The Eva Model as a Tool for Performance Measurement

The Eva Model as a Tool for Performance Measurement


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About the Book

Since the beginning of the nineties the keyword shareholder value was gaining an immense influence among corporate governance and the published literature on this topic. The traditional measurement of the operational performance based on accounting numbers was under criticism. Earnings basicly were not a reliable indicator. Thus shareholder value and the shareholder value approach broke new ground away from the Accounting Model towards a more dependable one, the Economic Model. Ever since a lot of approaches for the shareholder value have been arisen. The notablest ones were illustrated by Rappaport, Copeland et al. and Boston Consulting Group. Another well known method is the approach brought out by the consulting firm Stern Stewart & Co. Their EVA-model was first mentioned in the book The Quest for Value[. Based on the business ratio Economic-Value-Added there was built up a capacious model focusing on three fields of application EVA as instrument for evaluating a company EVA as index for financial performance EVA and the configuration of the corporate governance By the aid of this work I would like to present the EVA model and its application as a tool for performance measurement. In chapter 2 I will give a review on the shareholder value approach. I also will give a short introduction on the discounted cash flow (DCF) of Rappaport as an important method for this approach and some ideas about cash flow return on investment (CFROI) of the Boston Consulting Group and on the method of Copeland et al.. Chapter 3 will lead us towards a short introduction of the EVA concept and then especially to the calculation. Then chapter 4 gives an insight in the application of EVA as an instrument for assessment, a yardstick for financial performance and a guidance for the internal corporate governance. Finally I will give a short conclusion on EVA in chapter 5 with some evaluations and comparisons to other tools for performance measurement. Seminar paper aus dem Jahr 2004 im Fachbereich Wirtschaft - Controlling, Note: 1,7 (A-), Technische Universitat Chemnitz (Corporate Accounting and Controlling), Veranstaltung: SBWL - Controlling, Sprache: Englisch.


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Product Details
  • ISBN-13: 9783638294287
  • Publisher: Grin Verlag
  • Publisher Imprint: Grin Verlag
  • Language: English
  • ISBN-10: 3638294285
  • Publisher Date: 01 Jan 2004
  • Binding: Digital (delivered electronically)
  • No of Pages: 35


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