Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland
This paper examines the application of the increasingly popular economic value added (EVA) and cash value added (CVA) measures of financial performance of private and publicly-traded firms. EVA and CVA are measured for a sample of Polish firms. Since traditional accounting measures are not robust in...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia Press
2006
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| Online Access: | https://repo.uum.edu.my/id/eprint/25108/1/IJBF%203-4%202006%20107%20117.pdf |
| _version_ | 1825805224502099968 |
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| author | Urbanczyk, Edward Jaroszewicz, Edyta Midoduchowska Urbaniak, AgnieszkaDzczesna |
| author_facet | Urbanczyk, Edward Jaroszewicz, Edyta Midoduchowska Urbaniak, AgnieszkaDzczesna |
| author_sort | Urbanczyk, Edward |
| collection | UUM |
| description | This paper examines the application of the increasingly popular economic value added (EVA) and cash value added (CVA) measures of financial performance of private and publicly-traded firms. EVA and CVA are measured for a sample of Polish firms. Since traditional accounting measures are not robust indicators of corporate performance of firms in transitional economies, these alternate measures provide better assessment of value/cash flow creation and solvency. The results suggest that Polish firms, though reportedly making accounting profits, are indeed unable to generate value to shareholders. Further, the cash flow measures indicate a great deal of solvency risk. Thus, we recommend the use of these EVA and CVA measures for evaluating performance of companies, especially, in transitional economies. |
| first_indexed | 2024-07-04T06:28:48Z |
| format | Article |
| id | uum-25108 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:28:48Z |
| publishDate | 2006 |
| publisher | Universiti Utara Malaysia Press |
| record_format | eprints |
| spelling | uum-251082018-11-01T01:21:05Z https://repo.uum.edu.my/id/eprint/25108/ Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland Urbanczyk, Edward Jaroszewicz, Edyta Midoduchowska Urbaniak, AgnieszkaDzczesna HG Finance This paper examines the application of the increasingly popular economic value added (EVA) and cash value added (CVA) measures of financial performance of private and publicly-traded firms. EVA and CVA are measured for a sample of Polish firms. Since traditional accounting measures are not robust indicators of corporate performance of firms in transitional economies, these alternate measures provide better assessment of value/cash flow creation and solvency. The results suggest that Polish firms, though reportedly making accounting profits, are indeed unable to generate value to shareholders. Further, the cash flow measures indicate a great deal of solvency risk. Thus, we recommend the use of these EVA and CVA measures for evaluating performance of companies, especially, in transitional economies. Universiti Utara Malaysia Press 2006 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25108/1/IJBF%203-4%202006%20107%20117.pdf Urbanczyk, Edward and Jaroszewicz, Edyta Midoduchowska and Urbaniak, AgnieszkaDzczesna (2006) Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland. International Journal of Banking and Finance (IIJBF) (3-4(S)). pp. 107-117. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/134-the-international-journal-of-banking-and-finance-ijbf-vol-3-4-special-issue-2005-2006 |
| spellingShingle | HG Finance Urbanczyk, Edward Jaroszewicz, Edyta Midoduchowska Urbaniak, AgnieszkaDzczesna Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title | Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title_full | Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title_fullStr | Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title_full_unstemmed | Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title_short | Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland |
| title_sort | economic value added versus cash value added the case of companies in transitional economy poland |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25108/1/IJBF%203-4%202006%20107%20117.pdf |
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