TY  - JOUR
A1  - Hammer, Thomas
A1  - Siegfried, Patrick
T1  - Value-based controlling & international accounting 
of Economic Value Added (EVA) – An overview
T2  - Oblìk ì fìnansi - Accounting & Finance
N2  - This paper will discuss an important target variable in value-based management: the Economic Value Added (or EVA). EVA is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operting profit, adjusted for taxes on a cash basis. EVA can also be referred to as economic profit, as it attempts to capture the true economic profit of a company. This measure was devised by management consulting firm Stern Value Management, originally incorporated as Stern Stewart & Co. This research will also discuss adjustments and different types of assumptions that are necessary for the calculation as well as how to use them properly to obtain an interpretable result. Paper will explain the formula and which conversions should be considered. It remains to be noted that the EVA concept only leads to small progress from a scientific point of view, but that the clever marketing by Stern & Stewart has initiated a renaissance of the underlying residual profit concept. The paper provides practitioners and academics with a good overview of the demonstrable added value of EVA controlling and, in contrast, also illustrates the weaknesses of the calculation model or the inaccuracy due to interpretation variables, which overall limit the value of EVA as a management key performance indicator. The research includes comprehensive and substantial discussion in the scientific literature on EVA and its interpretation.
KW  - conversions
KW  - cash value added
KW  - economic value added
KW  - value-based management
KW  - controlling
KW  - Management
KW  - Wertorientiertes Management
KW  - Betriebliche Kennzahl
KW  - Economic Value Added
KW  - Controlling
KW  - Rechnungslegung
Y1  - 2022
UR  - https://hst.opus.hbz-nrw.de/frontdoor/index/index/docId/224
UR  - https://nbn-resolving.org/urn:nbn:de:hbz:tr5-2242
IS  - 2(96)
SP  - 43
EP  - 48
PB  - Institute of Accounting and Finance, Ukraine
ER  -