The Application of Economic Value Added in Financial Decision Making
There are several methods for measuring the performance and value of a company. These are, earnings per share, earnings growth rate, dividend per share, rate of return on equity and free cash flow. The purpose of this article is to show that all these criteria have some deficiencies and will introdu...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
1994-12-01
|
| Series: | تحقیقات مالی |
| Online Access: | https://jfr.ut.ac.ir/article_26014_4f090c1b4110af11b76ff19e4d8b0ff7.pdf |
| _version_ | 1818276034038988800 |
|---|---|
| author | دکتر علی جهانخانی اصغر سجادی |
| author_facet | دکتر علی جهانخانی اصغر سجادی |
| author_sort | دکتر علی جهانخانی |
| collection | DOAJ |
| description | There are several methods for measuring the performance and
value of a company. These are, earnings per share, earnings
growth rate, dividend per share, rate of return on equity and free
cash flow.
The purpose of this article is to show that all these criteria
have some deficiencies and will introduce a new criterion called
Economic value added (EVA).
EVA is computed by subtracting capital charges from net
operating income after taxes.
In this article several examples were presented to show that
EVA. correctly mea sure s company's performance and hence is
superior to all other criteria. |
| first_indexed | 2024-12-12T22:39:13Z |
| format | Article |
| id | doaj.art-efb72454d33044519c6479c1c126b7d8 |
| institution | Directory Open Access Journal |
| issn | 1024-8153 2423-5377 |
| language | fas |
| last_indexed | 2024-12-12T22:39:13Z |
| publishDate | 1994-12-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | تحقیقات مالی |
| spelling | doaj.art-efb72454d33044519c6479c1c126b7d82022-12-22T00:09:23ZfasUniversity of Tehranتحقیقات مالی1024-81532423-53771994-12-012526014The Application of Economic Value Added in Financial Decision Makingدکتر علی جهانخانیاصغر سجادیThere are several methods for measuring the performance and value of a company. These are, earnings per share, earnings growth rate, dividend per share, rate of return on equity and free cash flow. The purpose of this article is to show that all these criteria have some deficiencies and will introduce a new criterion called Economic value added (EVA). EVA is computed by subtracting capital charges from net operating income after taxes. In this article several examples were presented to show that EVA. correctly mea sure s company's performance and hence is superior to all other criteria.https://jfr.ut.ac.ir/article_26014_4f090c1b4110af11b76ff19e4d8b0ff7.pdf |
| spellingShingle | دکتر علی جهانخانی اصغر سجادی The Application of Economic Value Added in Financial Decision Making تحقیقات مالی |
| title | The Application of Economic Value Added in Financial Decision Making |
| title_full | The Application of Economic Value Added in Financial Decision Making |
| title_fullStr | The Application of Economic Value Added in Financial Decision Making |
| title_full_unstemmed | The Application of Economic Value Added in Financial Decision Making |
| title_short | The Application of Economic Value Added in Financial Decision Making |
| title_sort | application of economic value added in financial decision making |
| url | https://jfr.ut.ac.ir/article_26014_4f090c1b4110af11b76ff19e4d8b0ff7.pdf |
| work_keys_str_mv | AT dḵtrʿlyjhạnkẖạny theapplicationofeconomicvalueaddedinfinancialdecisionmaking AT ạṣgẖrsjạdy theapplicationofeconomicvalueaddedinfinancialdecisionmaking AT dḵtrʿlyjhạnkẖạny applicationofeconomicvalueaddedinfinancialdecisionmaking AT ạṣgẖrsjạdy applicationofeconomicvalueaddedinfinancialdecisionmaking |