A THEORETICAL EXPLORATION OF ECONOMIC VALUE ADDED (EVA) AND MARKET VALUE ADDED (MVA) AS MEASURES OF CORPORATE PERFORMANCE

Leena R. Lassi; Ganesh Teltumbade; Karan N. Deore; Vaibhav S. Pawar

doi:10.29121/shodhkosh.v5.i6.2024.6004

A THEORETICAL EXPLORATION OF ECONOMIC VALUE ADDED (EVA) AND MARKET VALUE ADDED (MVA) AS MEASURES OF CORPORATE PERFORMANCE

Authors

Leena R. Lassi Assistant Professor, SNJB’s Late Sau. K. B. J. College of Engineering, MBA Department, Neminagar, Chandwad, Nashik, Maharashtra, India, (Research scholar, Mahatma Gandhi Vidyamandir & Samajshree Prashantdada Hiray College of Management & Technology, Nashik, Maharashtra, India)
Ganesh Teltumbade Associate Professor, Mahatma Gandhi Vidyamandir & Samajshree Prashantdada Hiray College of Management & Technology, Nashik, Maharashtra, India
Karan N. Deore Assistant Professor, Ozar Vikas Sanstha’s Vishwasattya College of MBA, Ozar, Maharashtra, India
Vaibhav S. Pawar Assistant Professor, Ozar Vikas Sanstha’s Vishwasattya College of MBA, Ozar, Maharashtra, India

DOI:

https://doi.org/10.29121/shodhkosh.v5.i6.2024.6004

Keywords:

Economic, Value, Market, Corporate, Performance

Abstract [English]

Corporate finance revolves around the efficient management of a company’s financial resources to maximize shareholder value. In this context, performance metrics serve as critical tools for assessing a firm’s operational efficiency, financial health, and value creation capabilities. Traditional metrics such as Return on Equity (ROE), Return on Assets (ROA), Earnings Per Share (EPS), and Net Profit Margin have long been used to evaluate performance. However, these accounting-based indicators often fall short in capturing the true economic value generated by a firm, leading to the development of more sophisticated, value-based metrics like Economic Value Added (EVA), Market Value Added (MVA), and Cash Flow Return on Investment (CFROI).

References

The Quest for Value

Investment Valuation

Principles of Corporate Finance

Financial Management: Theory and Practice

The Real Key to Creating Wealth

EVA and MVA as Performance Measures and Signals for Strategic Change

Does EVA Beat Earnings? Evidence on Associations with Stock Returns and Firm Values

Stern Stewart & Co.

CFO.com – Value-Based Management

Investopedia – Economic Value Added

Investopedia – Market Value Added

Downloads

Published

2024-06-30

How to Cite

Lassi, L. R., Teltumbade, G., Deore, K. N., & Pawar, V. S. (2024). A THEORETICAL EXPLORATION OF ECONOMIC VALUE ADDED (EVA) AND MARKET VALUE ADDED (MVA) AS MEASURES OF CORPORATE PERFORMANCE. ShodhKosh: Journal of Visual and Performing Arts, 5(6), 2898–2907. https://doi.org/10.29121/shodhkosh.v5.i6.2024.6004

Download Citation

Issue

Vol. 5 No. 6 (2024): Volume 5 Issue 6 June Part 2- 2024

Section

Articles

License

This work is licensed under a Creative Commons Attribution 4.0 International License.

With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.

It is not necessary to ask for further permission from the author or journal board.

This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.