Всего статей в данном разделе : 43
Опубликовано на портале: 21-06-2006Charles L. Baum, Lee Sarver, Thomas H. Strickland American Business Review. 2004. Vol. 22. No. 2. P. 82-87.
The aim of this study is to analyze the relationship between a company's performance, measured by Economic Value Added (EVA) and/or Market Value Added (MVA), and the compensation of its chief executive officer. The study also considers whether any relationship between compensation and performance might vary by industry. The results show MVA to be more closely related to executive compensation than is EVA, having a positive and significant association with each component of compensation.
Опубликовано на портале: 21-06-2006Gerald T. Garvey, Todd T. Milbourn Journal of Accounting Research. 2000. Vol. 38. P. 209-245.
Dissatisfaction with traditional accounting-based performance measures has spawned a number of alternatives, of which Economic Value Added (EVA) is currently the most prominent. How can we tell which performance measures best capture managerial contributions to value? There is currently a heated debate among practitioners about whether the new performance measures have a higher correlation with stock values and their returns than do traditional accounting earnings. Academic researchers have relied instead on the variance of performance measures to gauge their relative accuracy. To formally address the above debate, we use a relatively standard principal-agent model in which contracts can be based on any two accounting-based performance measures plus the stock price. Rather than model detailed differences between EVA and traditional measures such as earnings, we focus on the problem that while the variability of each measure is observable, its exact information (signal) content is not. The model provides a formal method for researchers to ascertain the relative value of alternative accounting-based measures based on two distinct uses of the stock price. First, as is well known, prices provide a noisy measure of managerial value-added. In our model, stock prices also can reveal the signal content of alternative accounting-based performance measures. We then show how to combine stock prices, earnings, and EVA to produce an optimally weighted compensation scheme. We find that the simple correlation between EVA or earnings and stock returns is a reasonably reliable guide to its value as an incentive contracting tool. That is, a firm could reasonably gauge the merits of adding a measure like EVA by examining its correlation with the firm's stock price. This is not because stock returns are themselves an ideal performance measure, rather it is because correlation places appropriate weights on both the signal and noise components of alternative measures. We then calibrate the theoretical improvement in incentive contracts from optimally using EVA in addition to accounting earnings. Specifically, we empirically estimate the "value-added" of EVA by firm and industry. These estimates are positive and significant in predicting which firms have actually adopted EVA as an internal performance measure.
Опубликовано на портале: 21-06-2006Pere Vinolas, Xavier Adsera Financial Analysts Journal. 2003. Vol. 59. No. 2.
This paper presents a financial and economic approach to valuation. In addition to traditional discounted cash flow methods, one family of valuation models, economic value added (EVA) and other franchise factor approaches, has become a favorite methodology for corporate valuation. In EVA approaches, the key value driver is the spread between the return on the existing investments and their average cost of capital. Therefore, this approach focuses on the left-hand side of the balance sheet. The important aspect of this issue is not its technical interest or which of the different values of a company is correct, but what the value drivers are that each method identifies
Опубликовано на портале: 14-06-2006Leonard L. Lundstrum Review of Quantitative Finance & Accounting. 2003. Vol. 21. No. 2. P. 141-156.
Examines how information problems between the firm and the investor affect the value of an internal capital market. Relation of the firm's access to an internal capital market to firm value; Asymmetric information and excess firm value.
Опубликовано на портале: 22-06-2006David Yermack Journal of Financial Economics. 2003. Vol. 40. No. 2. P. 185-211.
The author presents evidence consistent with theories that small boards of directors are more effective. Using Tobin's Q as an approximation of market valuation, he finds an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations between 1984 and 1991. The result is robust to numerous controls for company size, industry membership, inside stock ownership, growth opportunities, and alternative corporate governance structures. Companies with small boards also exhibit more favorable values for financial ratios, and provide stronger CEO performance incentives from compensation and the threat of dismissal
Intellectual Capital and Corporate Value in an Emerging Economy: Empirical Study of Taiwanese Manufacturers. [статья]
Опубликовано на портале: 14-06-2006Chun-Yao Tseng, Yeong-Jia James Goo R & D Management. 2005. Vol. 35. No. 2. P. 187-201.
Competitive success now is based less on the strategic allocation of physical and financial resources, and more on the strategic management of intellectual capital. Although intellectual capital is intangible and cannot be accurately measured, companies must develop methods of increasing corporate value by proactively focusing on intellectual capital management. This study examines the relationship between intellectual capital and corporate value in an emerging economy. This study employs an intellectual capital perspective, resource-based view and a financial perspective, and investigates how to apply the concept of intellectual capital to value creation. After reviewing the relevant literature, this study identifies human capital, organizational capital, innovation capital and relationship capital as four constructs of intellectual capital. Corporate value is measured using three selection methods: (1) Market/Book value, (2) Tobin'Qand (3) Value Added Intellectual Coefficient (VAIC™). Through a questionnaire survey and secondary data collection, this study applies the Structure Equation Model to analyze the relationships among four constructs of intellectual capital, as well as the relationship between intellectual capital and corporate value. From the empirical findings, for Taiwanese manufacturers, a positive relationship exists between intellectual capital and corporate value. This study visualizes and mobilizes intellectual capital to articulate eight value creation paths.
Опубликовано на портале: 14-06-2006Norma Juma, G. Tyge Payne International Journal of Innovation Management. 2004. Vol. 8. No. 3. P. 297-318.
Intellectual capital (IC) has been proposed as an essential factor for organizational survival and maintenance of competitive strength. However, there has been very limited consensus on what encompasses IC and how it can best be conceptualized and measured. Further, very little empirical work has specifically examined the relationship between IC and financial performance. Given these shortcomings, this paper focuses first on the impact IC has on performance and secondly on the role strategic alliances may have on this relationship. While we argue that IC will impact performance, we anticipate this relationship will be moderated by strategic alliances and other inter-firm collaborations. Findings reveal interesting relationships that suggest further effort should be placed on the conceptualization and measurement of IC, specifically regarding its relationship to firm performance.
Managing Costs and Cost Structure throughout the Value Chain: Research on Strategic Cost Management [статья]
Опубликовано на портале: 21-06-2006Shannon W. Anderson SSRN Working Papers. 2005.
Strategic cost management is deliberate decision-making aimed at aligning the firm's cost structure with its strategy and optimizing the enactment of the strategy. Alignment and optimization must comprehend the full value chain and all stakeholders to ensure long run sustainable profits for the firm. Strategic cost management takes two forms: structural cost management, which employs tools of organizational design, product design and process design to build a cost structure that is coherent with strategy; and executional cost management, which employs various measurement and analysis tools (e.g., variance analysis, analysis of cost drivers) to evaluate cost performance. In this chapter I develop a model that relates strategic cost management to strategy development and performance evaluation. I argue that although management accounting research has advanced our understanding of executional cost management, other management fields have done more to advance our understanding of structural cost management. I review research in a variety of management fields to illustrate this point. I conclude by proposing that management accounting researchers are uniquely qualified to create a body of strategic cost management knowledge that unifies structural and executional cost management.
Опубликовано на портале: 16-06-2006Justin Pettit IVEY Business Journal. 2001.
How one manage for value? It is not, as I will show, just a case of blindly interpreting and acting on your numbers. Successful cases of managing portfolios for value - Molson, SPX and Herman Miller - show that these companies are careful to apply and interpret their numbers when formulating and exercuting value-based strategies. In this article, I will look at how a company can do this, and discuss the common pitfalls and how to avoid them.
Modeling the Relationship between Corporate Strategy and Wealth Creation Using Neural Networks [статья]
Опубликовано на портале: 21-06-2006Caron H. St. John, Nagraj Balakrishnan, James O. Fiet Computers & Operations Research. 2000. Vol. 27. No. 11-12.
In this paper, we hypothesize that there is a non-linear relationship between corporate strategy, short-run financial variables, and wealth creation measured as market value added (MVA), and use neural networking to model this relationship. The neural network model accurately categorized over 90% in the training set and nearly 93% of firms in the holdout test sample. Additional analysis revealed that strategy variables were particularly effective predictors of an upward trend in wealth creation whereas short-run financial variables were more effective in predicting a downward trend, or wealth destruction. Neural networks outperformed discriminant analysis in predictive ability in all analyses, suggesting the presence of non-linear effects. This research represents a first attempt to use neural networking to model the relationship between corporate strategy and wealth creation.
On the Equivalence of Net Present Value and Market Value Added as Measures of a Project's Economic Worth [статья]
Опубликовано на портале: 21-06-2006Joseph C. Hartman Engineering Economist. 2000. Vol. 45. No. 2. P. 158-164.
The metric Economic Value Added, or EVA, has recently become quite popular for analyzing company balance sheets, determining executive compensation packages and even project selection. The analysis entails comparing net after-tax operating profit against the allocated cost of capital for a given period. This paper shows, in general, that Market Value Added (MVA), which is the present value of a series of EVA values, is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting. Additionally, insight is provided into the rationale behind EVA analysis through an interpretation of its capital and income allocation procedure for investment projects
Опубликовано на портале: 03-10-2003Myeong-Hyeon Cho Journal of Financial Economics. 1998. Vol. 47. No. 1. P. 103-121.
This paper examines the relation among ownership structure, investment, and corporate value, focusing on whether ownership structure affects investment. Ordinary least squares regression results suggest that ownership structure affects investment and, therefore, corporate value. However, simultaneous regression results indicate that the endogeneity of ownership may affect these inferences, suggesting that investment affects corporate value which, in turn, affects ownership structure. The evidence shows that corporate value affects ownership structure, but not vice versa. These findings raise questions regarding the assumption that ownership structure is exogenously determined, and bring into question the results in studies that treat ownership structure as exogenous.
Опубликовано на портале: 03-10-2003David J. Denis, Diane K. Denis Journal of Finance. 1995. Vol. 50. No. 4. P. 1029-1057.
Autors document that forced resignations of top managers are preceded by large and significant declines in operating performance and followed by large improvements in performance. However, forced resignations are rare and are due more often to external factors (e.g., blockholder pressure, takeover attempts, etc.) than to normal board monitoring. Following the management change, these firms significantly downsize their operations and are subject to a high rate of corporate control activity. Normal retirements are followed by small increases in operating income and are also subject to a slightly higher than normal incidence of postturnover corporate control activity.
Опубликовано на портале: 21-06-2006Rainer Strack, Ulrich Villis European Management Journal. 2002. Vol. 20. No. 2.
Many companies have introduced new value-based methods such as the EVA™ or CVA concept for strategic and operational control. However, these concepts are still strongly focused on investment capital and can hardly explain and manage value creation in today’s service and knowledge economy. This article presents a new, integrated value management concept (RAVE™) for managing human capital (Workonomics™), customer capital (Custonomics™), and supplier capital (Supplynomics), all in a value-oriented and quantitative way. All of these concepts are anchored in CVA/EVA and thus culminate in the same central controlling metric. After outlining the concept, the authors illustrate its application and practical benefits with specific examples.
Опубликовано на портале: 21-06-2006Douglass Cagwin, Marinus J. Bouwman Management Accounting Research. 2002. Vol. 13. No. 1. P. 1-39.
This study investigates the improvement in financial performance that is associated with the use of activity-based costing (ABC), and the conditions under which such improvement is achieved. Internal auditors furnish information regarding company financial performance, extent of ABC usage, and enabling conditions that have been identified in the literature as affecting ABC efficacy. Confirmatory factor analysis and structural equation modelling are used to investigate the relationship between ABC and financial performance. Results show that there indeed is a positive association between ABC and improvement in ROI when ABC is used concurrently with other strategic initiatives, when implemented in complex and diverse firms, when used in environments where costs are relatively important, and when there are limited numbers of intra-company transactions. In addition, measures of success of ABC used in prior research appear to be predictors of improvement in financial performance.