Economic Value Added (EVA): A Literature Review Md. Zahedul Islam, Md. Thasinul Abedin, & Md. Sharif Hossain

Economic Value Added (EVA): A Literature Review

Author (s)

Md. Zahedul Islam, Md. Thasinul Abedin, & Md. Sharif Hossain

Abstract

Traditional accounting based performance measures fail to assess the true economic return of a firm. In this regard Economic Value Added (EVA) reflects true economic profit of a firm.  This paper explores the role, limitations, foundation, computation of economic value added (EVA) from the established literature. In addition, this paper addresses the key adjustments into residual earnings to reach into EVA. Finally a few numerical examples to introduce key adjustments have been provided. However, there are some other adjustments that are not addressed in this paper. Hence, considering all the financial adjustments in computing EVA can make the paper more worthy of knowledge sharing and dissemination. EVA is termed as a better performance measure across the firms.

Key words: Economic Value Added, Economic Profit, Financial Adjustments, Performance Measure, Residual Earnings.

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Title: Investment in Government Securities by State-owned Commercial Banks
Author: Md. Zahedul Islam, Md. Thasinul Abedin, & Md. Sharif Hossain
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3522161
Media: Online & Print
Volume: 3
Issue: 1
Acceptance Date: 12/10/2019
Date of Publication: 18/10/2019
PDF URL: http://ijsab.com/wp-content/uploads/412.pdf
Free download: Available
Page: 274-285
First Page: 274
Last Page: 285
Paper Type: Literature Review
Current Status: Published

Cite This Article:

Md. Zahedul Islam, Md. Thasinul Abedin, & Md. Sharif Hossain (2019). Economic Value Added (EVA): A Literature Review, International Journal of Science and Business, 3(1), 274-285. doi: https://doi.org/10.5281/zenodo.3522161

Retrieved from http://ijsab.com/wp-content/uploads/412.pdf

 

About Author (s)

Md.  Zahedul Islam, Lecturer, Department of Accounting, University of Chittagong.

Md. Thasinul Abedin (corresponding author), Assistant Professor, Department of Accounting, University of Chittagong.

Md. Sharif Hossain, Professor, Department of Accounting & Information Systems, University of Dhaka.

 

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DOI: https://doi.org/10.5281/zenodo.3522161

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