Volume : VII, Issue : VIII, August - 2017

Economic Value Added Accounting : An Appropriate Corporate Performance Measure

Dr. Virender S. Poonia, Ms Vandana

Abstract :

 Economic Value Added Accounting has been acclaimed to be the most recent and exciting innovation in company performance measures. It can ing great value to a company by focusing the entire organization on activities that produce results valued by shareholders. This study examines the benefits and limitations of using EVA Accounting as a performance measure.

Economic Value Added is a technique to measure wealth created for shareholders. EVA is the surplus generated by an entity after meeting an equitable charge towards providers of capital.

It is the post–tax return on capital employed (adjusted for the tax–shield on debt) less than the capital employed. Companies which earn higher returns than cost of capital are creating shareholder’s value.This technique to measure performance of a company is far better than that of PAT, EPS, ROA. 

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Virender S. Poonia, Ms Vandana, Economic Value Added Accounting : An Appropriate Corporate Performance Measure, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾8 | August‾2017

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