Economic value added
is the dependent variable in this study which can be calculated by the following formula:
Is economic value added
more associated with stock return than accounting earnings?
An Empirical Analysis of Economic Value Added
as a Proxy for Market Value Added" Journal of Applied Corporate Finance, 9, 1997, 41-49.
Analyzing the first peripheral hypothesis: the relationship between economic value added
and earning quality
Fortune magazine in October 1996 economic value Introduced as the most attractive financial ideas and noted that American institute predicted an economic value added
will alternative earnings profit per share.
Since the LSO program is structured to require a cost of capital return before the options are in-the-money, the plan also rewards growth in Economic Value Added
, so that without developing a high-value growth strategy, management can have little expectation for a payoff.
Cash flow, economic value added
(EVA) and earnings before interest, taxes, depreciation and amortization (EBITDA) valuation models should continue to gain momentum as key benchmarks under the new rules.
Additionally, Rackspace announced its move to measure the company's performance by Economic Value Added
, a tool which measures the difference between the cost and return on capital, developed by Stern Stewart & Co.
Economic Value Added
is MSC's primary financial management and incentive compensation measure.
The concepts of Economic Value Added
(EVA) and Market Value Added (MVA) are schemes devised to build future stock gains into companies' internal hurdle rates.
We emphasize generating positive economic value added
first, then we focus on revenue growth, a strategy that sets us apart from many of our competitors," said Tom Zorn, president and CEO of RSC Equipment Rental.
the New York firm renowned for its economic value added
(EVA) metric, says it is supporting iVita in the launch.