Всего статей в данном разделе : 35
Опубликовано на портале: 21-06-2006James S. Wallace Journal of Accounting and Economics. 1997. Vol. 24. No. 3. P. 275-300 .
Managers, consultants, and the financial press assert that compensation plans based on residual income change managers' behavior. This assertion is empirically tested by selecting a sample of firms that began using a residual income performance measure in their compensation plans and comparing their performance to a control sample of firms that continue to use traditional accounting earnings-based incentives. The results generally support the adage ‘you get what you measure and reward'. The results also support many hypothesized managerial actions associated with residual income-based performance measure incentives.
Опубликовано на портале: 21-06-2006Richard S. Warr Journal of Economics and Business. 2005. Vol. 57. No. 2. P. 119-137.
Proponents of economic value added (EVA) argue that changes in the metric accurately measure changes in the performance of a firm or business unit through time and therefore can represent a reliable measure of managerial effectiveness. However, inflation distorts EVA through the operating profit, the cost of capital, and the capital base and these distortions have the potential to result in inefficient investment and compensation outcomes. Using an inflation-corrected EVA metric, I measure the sensitivity of EVA to the level of, and changes in, inflation for a large sample of US stocks and find evidence of significant inflation induced distortions.
Опубликовано на портале: 21-06-2006Jonathan K. Kramer, Jonathan R. Peters Journal of Applied Finance. 2001. Vol. 11. No. 1. P. 41-50.
Companies worldwide use the financial metric Economic Value Added (EVAR) to help then assess their financial performance. However researchers speculate that EVA is better suited to traditional manufacturing businesses than to knowledge-based businesses. This study empirically rests the relation between capital intensity and EVA's ability to serve as an effective proxy of market value added. We find that EVA is no less "at home" in the information economy than it is in traditional manufacturing businesses. However, our results do indicate that in most of the industries studied, the marginal costs of using EVA as a proxy for market value added are not justified by any marginal benefits.
Опубликовано на портале: 21-06-2006Lyndal Drennan, Michael Kelly Critical Perspectives on Accounting. 2002. Vol. 13. No. 3. P. 311-331.
Research dealing with the implementation of system changes such as activity-based costing (ABC) systems is founded largely on a presumption that the motivation for the innovation is economic. The definition of success or failure then rests on the project’s reaching a stage of implementation where the new data are used in routine and/or unforeseen ways to improve economic efficiency. This paper presents a view of an ABC project where complex motivations, both economic and institutional, are identified, these held in turn by different groups within the organization as well as external groups likely to be affected by the project. Seen in terms of its institutional motivations, the project, documented in an internal review as a failure because it was abandoned without using the data, can be defined as a success by at least some of the affected groups.
Assessing Empirical Research in Managerial Accounting: A Value-Based Management Perspective [статья]
Опубликовано на портале: 21-06-2006Christopher D. Ittner, David F. Larcker Journal of Accounting and Economics. 2001. Vol. 32. No. 1-3. P. 349-410 .
This paper applies a value-based management framework to critically review empirical research in managerial accounting. This framework enables us to place the exceptionally diverse set of managerial accounting studies from the past several decades into an integrated structure. Our synthesis highlights the many consistent results in prior research, identifies remaining gaps and inconsistencies, discusses common methodological and econometric problems, and suggests fruitful avenues for future managerial accounting research.
Опубликовано на портале: 21-06-2006Financial Analysis, Planning & Reporting. 2003. Vol. 3. No. 11. P. 1-12.
Recommends the cash flow return on investment (CFROI) and gross investment technique in measuring corporate growth. Characteristics of CFROI; Limitations of the EBITDA analysis; Best method for determining future stock prices.
Control Systems in Multibusiness Companies: From Performance Management to Strategic Management [статья]
Опубликовано на портале: 21-06-2006Fredrik Nilsson, Nils-Goran Olve European Management Journal. 2001. Vol. 19. No. 4. P. 344-358.
This article discusses the role of control systems in multibusiness companies. The focus is on formulation and implementation of corporate and business unit strategies. Three widely used categories of control models are discussed: (1) models for performance management, (2) models for value-based management, and (3) models for strategic management. The discussion is based upon central normative texts and examples from applications in Nordic companies. The description and discussion of the control models and their features should facilitate decision-making on the design and use of control systems in multibusiness companies.
Опубликовано на портале: 14-06-2006J. R. Franks, J. J. Pringle Journal of Finance. 1982. Vol. 37. No. 3. P. 751-763.
In this paper we consider the role of financial intermediaries in the valuation of firms and projects. We show that security prices should reflect both used and unused debt capacity if some corporations can act as financial intermediaries and can capture the tax benefits of debt capacity unused by the operating firm. We also provide some reasons why the value of the firm might be increased if the financing and operating risks of the firm are separated and financial intermediaries issue debt rather than the unit operating the asset.
Discussion of EVA versus Earnings: Does It Matter Which Is More Highly Correlated with Stock Returns? [статья]
Опубликовано на портале: 21-06-2006Madhav V. Rajan Journal of Accounting Research. 2000. Vol. 38. P. 247-254.
A distinctive feature of the paper is its use of both theoretical and empirical approaches to understanding EVA. The authors first analyze a principal-agent model using certaine parametric assumptions. They model EVA and accounting earnings as two distinct, noisy perfomance measures of the same uderlying construct, with both measures providing information to the principal about the agent's action choices. They subsequently derive a theoretical expression for the percentage value-added contributed by using EVA as a measure for evaluating managerial perfomance. A key finding is that this expression can be restated as a function of the observed correlations of each of the metrics with stock price. In the second part of the paper, the authors estimate this value for their sample of firms using time-series data, and then correlate the estimates cross-sectionally with the decision to adopt EVA by these firms. In support of the theoretical results, the authors find a positive association, after controlling for other factors such as size, leverage, and growth oppportunities.
Опубликовано на портале: 21-06-2006Jan Mouritsen Management Accounting Research. 1998. Vol. 9. No. 4. P. 461-482.
This paper compares and contrasts Economic Value Added (EVATM) and Intellectual Capital (IC) as two technologies of managing oriented towards encouraging growth. The analysis suggests that EVATMand IC contrasts greatly. EVATMis a financial management system based on radical delegation and ‘empowerment’ and which therefore directs attention to the results created by managers. Based on financial micro-theory, EVATMis a performance measure that attempts to account more properly for the cost of capital, but more than that, it is also a management control system which seeks to create radically independent business units and minimize corporate staff. IC is a different control system concerned to encourage endogenous growth implemented via loosely coupled sets of non-financial measurements that become strong via stories and metaphors about the post-modern firm in the post-modern world. Here, based on theories of organizational knowledge and competence development, emphasis is put on mobilizing white collar productivity and creativity based on some form of evolutionary economics or resource-based theory. While EVATMlooks to managers as the movers of change, IC seems more systematically to promote the creativity possessed by employees
Economic Value Added (EVA) as a Proxy for Market Value Added (MVA) and Accounting Earnings: Empirical Evidence from the Business Cycle [статья]
Опубликовано на портале: 21-06-2006John J. Kim, Jae-Hyeon Ahn, J. K. Yun Journal of Accounting & Finance Research. 2004. Vol. 12. No. 1. P. 40-48.
Further understanding of the 'significance of EVA' issue, i.e., 1) whether stock prices follow EVA better than a traditional accounting measure such as earning per share (EPS), 2) how correlation between EVA and MVA are affected by two different economic periods, and 3) whether there is effectiveness of EVA at the industry level. We find no evidence that increase in the change in EVA is attributable to increases in the market-adjusted returns (MAR) regardless of the stage of the business cycle. However, strong positive correlation between EVA and MVA from both parametric and nonparametric tests are more evident during the contraction period. Finally, we also find that the market response to accounting earning, not EVA, is more prone to volatile swings in the manufacturing sector than non-manufacturing industries.
Опубликовано на портале: 21-06-2006Michael L. Costigan, Linda M. Lovata
Economic Value Added is a new measure of performance that is purported to better align managers’ incentives to that of the shareholders. Accordingly, firms that experience higher agency conflicts should be more inclined to use this performance evaluation system. Additionally, the organizational strategy of the firm should influence the likelihood of employing EVA. Prospector firms are defined as firms that apply a differentiation strategy while defender firms focus on being cost-leaders. Firms identified as prospectors should be less likely to use EVA. One hundred and fifteen firms were identified as being adopters of EVA. Logistic regression was performed to contrast these firms to a control group of 1271 non-adopters. The results indicate that firms using EVA exhibit a higher percentage of institutional ownership and a lower percentage of insider ownership than non-adopters. Prospector firms as defined by a higher ratio of research and development to sales tend to use EVA less than defender firms. Accounting adjustments are a focal point of the EVA formulation and the results presented in this study suggest that providing appropriate incentives may be more complex than the developers of EVA imply.
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