Sustainability Assessment Using Economic Value Added

Jankalová, Miriam; Kurotová, Jana

doi:10.3390/su12010318

Cited by 29 publications

(26 citation statements)

References 20 publications

(55 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Recent research that is based on the use of EVA as a performance measurement tool has resulted in analyzes being performed on a single company (Wang and Yang 2014;Ion and Man 2019;Jankalová and Kurotová 2020;Novyarni and Ningsih 2020;Radneantu et al 2010) or in sample-level analyzes (Pavelková et al 2018;Geng et al 2021). From the point of view of the analyzed field of activity, these studies focused on various fields, such as: tourism and hotel industry (Trandafir 2015;Geng et al 2021), construction (Horak et al 2020) oil industry (Wang and Yang 2014), steel industry (Ion and Man 2019), banking industry (Owusu-Antwi et al 2015), IT sector (Radneantu et al 2010), and the sale of spare parts (Jankalová and Kurotová 2020). The conclusions of this research are very diverse.…”

Section: State Of the Art Regarding Evamentioning

confidence: 99%

Performance Management for Growth: A Framework Based on EVA

Tudose

Rusu

Avasilcăi

2021

JRFM

View full text Add to dashboard Cite

Some of the constructs in the field of performance management are intuitive or not empirically validated. This study provides a data-driven framework for measuring and improving the performance through synchronized strategies. The ultimate goal was to provide support for increasing business performance. Empirical research materializes in an exploratory case study and a statistical analysis with econometric models. The case study revealed that a company can improve its performance, even in periods of growth, being characterized by consistent investments. The statistical analysis, performed on a restricted sample of companies, confirmed the results that were provided by the case study. The measurement of performance was made by capitalizing on financial and non-financial data precisely to intensify the interest for corporate sustainability. The obtained results, contrary to previous research that showed that economic value added (EVA) is negatively influenced by the increase in invested capital, open up new research perspectives to find out whether, at the industry level, performance appraisal that is based on EVA stimulates the development of a business’s economic capital. The research has a double utility: scientific (by providing an overview of the state of the art in the field of performance management) and practical (by providing a reference model for measuring and monitoring performance).

show abstract

Section: State Of the Art Regarding Evamentioning

confidence: 99%

Performance Management for Growth: A Framework Based on EVA

Tudose

Rusu

Avasilcăi

2021

JRFM

View full text Add to dashboard Cite

show abstract

“…They stated that these costs can be reduced through adequate reporting, as Lemma et al [44] also demonstrated in the example of South Africa. Likewise, Jankalová and Kurotová [45] combined the EVA indicator with non-financial indicators on the basis of a case study, with the aim of comprehensively evaluating the business, in particular with regards to the sustainability of its activities. This approach can be found relatively frequently in current research.…”

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

View full text Add to dashboard Cite

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.

show abstract

“…They need to consider the assumed risk, the dividends paid and the stock price increase in the cost of equity expected for the given investment. All of these deductions (except for the tax deduction) can be summarized in the WACC (Jankalová & Kurotová, 2019). In other words, it can be seen as the excess in the WACC coming from an investment.…”

Section: Economic Value Addedmentioning

confidence: 99%

“…This is why EVA is commonly used, nowadays, as a performance index for defining the compensations of managers and groups of employees (Kleiman, 1999). To describe the financial situation of any company and to calculate the value that was generated, the EVA methodology can be adopted as a suitable solution (Jankalová & Kurotová, 2019). Therefore, EVA is recognized as an important tool for performance measurement and management all over the world, particularly as a component of corporate strategy in advanced economies (Sharma & Kumar, 2010).…”

Section: Economic Value Addedmentioning

confidence: 99%

Financial Behaviour in a Mandatory Conversion Process: Empirical Evidence from Colombia

González-Ruiz

Acosta-García

Villa-García

2020

Global Business Review

View full text Add to dashboard Cite

Convertible bonds are attractive because they offer alternatives for both issuers and investors. Therefore, several companies have used this financial mechanism to raise capital. Although several studies have been published on this topic, mandatory convertible bonds (MCBs), which are subsets of convertible bonds, and their effect on economic value added (EVA) have not been explored deeply. This study analyses what happens to the EVA before, during and after the issuance when investors are involved as shareholders of a company issuing MCBs. A Colombian company is used as a case study. The results reveal that one of the main reasons behind the change in the EVA is not only the weighted average cost of capital or the invested capital but also the operating profit. The net operating profit after tax (NOPAT) depends on operating profit. Therefore, to generate a positive EVA, the NOPAT margin needs to be higher than the margin of financing costs.

show abstract

Sustainability Assessment Using Economic Value Added

Cited by 29 publications

References 20 publications

Performance Management for Growth: A Framework Based on EVA

Performance Management for Growth: A Framework Based on EVA

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

Financial Behaviour in a Mandatory Conversion Process: Empirical Evidence from Colombia

Contact Info

Product

Resources

About