Empirical Analysis of Adopters of Economic Value Added
Опубликовано на портале: 21-06-2006
Тематические разделы:
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.
Ключевые слова
См. также:
Management Accounting Research.
2003.
Vol. 14.
No. 3.
P. 235-254 .
[Статья]
European Management Journal.
2002.
Vol. 20.
No. 2.
[Статья]
American Business Review.
2004.
Vol. 22.
No. 2.
P. 82-87.
[Статья]
European Management Journal.
2003.
Vol. 21.
No. 3.
P. 364-369 .
[Статья]
Journal of Applied Corporate Finance.
1995.
Vol. 8.
No. 2.
[Статья]
Advances in Accounting.
2003.
Vol. 20.
P. 265-290 .
[Статья]
Management Accounting Research.
1998.
Vol. 9.
No. 4.
P. 461-482.
[Статья]