1、原文二： Economic Value Added - A General Perspective This paper explains the concept of Economic Value Added (EVA) that is gaining popularity in India. Thepaper examines whether EVA is a superior performance measure both for corporate reporting and forinternal governance. It relied on empirical studies
2、 in U.S.A. and other advance economies. It concludedthat though EVA does not provide additional information to investors, it can be adapted as a corporatephilosophy for motivating and educating employees to differentiate between value creating and valuedestructing activities. This would lead to dire
3、ct all efforts in creating shareholder value. The paper brings toattention the dangerous trend of reporting EVA casually that might mislead investors. ECONOMIC VALUE ADDED the concept EVA is the most misunderstood term among the practitioners of corporate finance. Theproponents of EVA are presenting
4、 it as the wonder drug of the millennium in overcomingall corporate ills at one stroke and ultimately help in increasing the wealth of theshareholder, which is synonymous with the maximization of the firm value. Theattractiveness of the EVA lies in its use of cash flow and cost of capital that arede
5、terminant of the value of the firm. In the process, EVA is being bandied about with utmost impunity by all and sundry,which includes the popular press. The academic world in its turn has come up withvarious empirical studies which either supports the superiority of EVA or questions theclaim of its p
6、roponents. Currently the empirical evidence is split almost half way. EVA is nothing but a new version of the age-old residual income concept recognized byeconomists since the 1770s. Both EVA and residual income concepts are based on theprinciple that a firm creates wealth for its owners only if it
7、generates surplus over the costof the total invested capital. So what is new? Perhaps EVA could bring back the lostfocus on economic surplus from the current emphasis on accounting profit. In a lightervein it can be said that in an era where commercial sponsorship is the ticket to thepopularity of e
8、ven the concept of god, the concept of residual income has not found agood sponsor until Stern Stewart and Company hasadopted it and relaunched it with abrand new name of EVA. Technically speaking EVA is nothing but the residual income after factoring the cost ofcapital into net operating profit aft
9、er tax. But this is only the tip of the iceberg as will beseen in the next few sections. The paper examines EVA both as a measure of overallperformance and a management philosophy that helps to improve the productivity ofresources. EVA= (ROI- WACC) x CAPITAL EMPLOYED Capital being used in EVA calcul
10、ation is not the book capital, capital is defined as anapproximation of the economic book value of all cash invested in going-concern businessactivities, capital is essentially a companys net assets (total assets less non-interest-bearing current liabilities), but with three adjustments: Marketable
11、securities and construction in progress are subtracted. The present value of noncapitalized leases is added to net property, plant, andequipment. Certain equity equivalent reserves are added to assets: Bad debt reserveis added to receivables. LIFO reserve is added to inventories. The cumulative amor
12、tization of goodwill is added back to goodwill. R&D expense is capitalized as a long-term asset and smoothly depreciated over 5years (a period chosen to approximate the economic life typical of an investment inR&D). Cumulative unusual losses (gains) after taxes are considered to be a long-terminvest
13、ment. A firm can motivate its managers to direct their effort towards maximizing the value ofthe firm only by, first measuring the firm value correctly and secondly by providingincentives to managers to create value. Both are interdependent and they complementeach other. Therefore this paper examine
14、s the EVA concept from two perspectives, EVAas a performance measure and EVA as a corporate philosophy. We shall examine EVA as a performance measure to assess whether it conveys anyadditional information to investors over conventional performance measures. In otherwords, whether information on EVA
15、leads to better decision by investors. Examining EVA as a corporate philosophy we intend to look at the efficacy of EVAwhen implemented at every level of managerial decision making process to encouragemanagers to deploy resources only on value enhancing activities and to align the interestsof shareh
16、olders with managers. This involves two things, one is linking managerialcompensation package with EVA and second is to inculcate the culture of evaluatingevery action from the viewpoint that it should generate EVA. The ultimate outcomeshould be enhancement in the firm-value measured by the capital
17、market. When EVA isused as a management philosophy, it results in the enhancement of productivity bycontinuously focusing on return vis-vis cost of capital. However as market discountsexpected long term performance of the firm, any compensation that motivatesenhancement of short term EVA, may not ma
18、ximize the firm value. However with EVA culture, the firm as a whole focuses on the economic surplus and thatdefinitely improves value enhancement process. Of course, this can be achieved even byimplementing the other practices but the simplicity of EVA in communicating the veryfundamental principle
19、, that generation of surplus over cost of capital can only enhancethe firm value, makes it a management technique superior to other planning and controltechniques. We shall examine the appropriateness of this perception. EVAAS A PERFORMANCE MEASURE Proponents of EVA argue that EVA is a superior meas
20、ure as compared to otherperformance measures on four counts: 1.it is nearer to the real cash flows of the business entity； 2.it is easy to calculate and understand； 3.it has a higher correlation to the market value of the firm and 4.its application to employee compensation leads to the alignment of managerial interests with those of the shareholders, thus minimizing the supposedly dysfunctional behavior of the management.
