Economic Value Added: A Better Technique for Performance Measurement
Abstract
Measuring performance in a day to day business to corporate managers. The job is very much important for corporate performance also. Rewarding out performers and treating under performers are today’s norm to establish equity to work place. Aptly, lots of techniques have been developed so far to address this issue. Each technique has its own parameters and conceptual underpinning. Conceptualization of techniques with their limitations and challenges are very much important before their application. This paper gives an overview of different performance measures emphasizing Economic Value Added (EVA). An attempt is made to compare EVA with other performance measures to give the readers a more focused orientation with the EVA. Literature review is used as a methodology with qualitative orientation of research.
Keywords: Performance measures, Economic Value Added, Residual Income, Market Value Added and Return on Investment.
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