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PREPARED BY: KISHAN .R. TANK ROLL NO:10F17
SUBMOTTED TO: Dr.P.K.PRIYAN
G.H.PATEL INSTITUTE OF BUSINESS MANAGEMENT S.P.UNIVERSITY V V NAGAR.
“Knowledge is not power but the applied knowledge is power” As the above line suggests the importance of application of knowledge, this report contains the pragmatic approach of financial concepts. The practical approach is much more important to have an exposure of concepts which have been learning in the class room teaching. This report contains the fundamentals aspects of ECONOMIC VALUE ADDED concept
I would like to pay my thanks to all who helped me while doing this project work. Without the support of colleague and guide this project would have not been prepared. I would like to pay my special thanks to Dr.P.K.Priyan who helped me in clearing the concepts of financial management. I would also pay my thanks to my friends who helped me in preparing this report.
6 2.9 2.5 2.7 2.3 2.4 2.how does it create value? The concept of MVA 12 3 4 Conclusion Bibliography 36 38 4 .10 2. no.1 2.2 1.2 2. 5 2 Concepts of EVA 2.3 Introduction Objective of the study Review of literature Page no.TABLE OF CONTENT Sr.1 1.8 2. 1 Particulars Background of the study 1.11 Introduction to the topic What do we mean by EVA? Calculating EVA Three pillars for calculating EVA Accounting adjustments for EVA Economic value added model The uses of EVA The strength and limitations of EVA The EVA v/s other performance measures EVA.
Chapter 1 Background Of Study 5 .
we can list down the financial measures as follow: ROI i. Creating the value for the share holders implies the objective of the company that is wealth maximization. Thus the issue of exclusion of opportunity cost gave the birth to the new concept called EVA i. There are some traditional as well as modern performance measurement tools available. And for maintaining and sustaining the profitability. cost of capital. we have one more i. return on capital employed Ratio analysis Putting the all above measures.INTRODUCTION The basic objective of any company is to earn profit as well as creating the value for its shareholders.e.e.e. And for wealth maximization the company has to maintain the profitability and growth.e.e. economic value added. This report contains the fundamentals of EVA concept 6 . return on investment ROCE i. a company must have a better performance measurement. DU PONT analysis But all above all performance measures were not considering the opportunity cost i.
This report also includes the methodology of calculating the EVA This study also aims at knowing the Pros and cons of using EVA This study includes the comparison of EVA with other performance measures.e.OBJECTIVE OF STUDY The basic objective of the study is to know the fundamental aspects of EVA i. Methodology: This report contains the secondary data and information analysis 7 . Economic Value Added. The study also aims at knowing analyzing the practicability of EVA.
One professedly recent innovation in the field of internal and external performance measurement is a trade-marked variant of residual income known as economic value-added (EVA). Worthington1 School of Economics and Finance Queensland University of Technology. 1) Economic Value-Added: A Review of the -Theoretical and Empirical Literature by Andrew C. 8 .REVIEW OF LITERATURE The review of literature contains the information regarding past studies and research papers presented by different legend professors in different university. This paper attempts to provide a synoptic survey of EVA‟s conceptual underpinnings and the comparatively few empirical analyses of value-added performance measures. there has been renewed emphasis on devising measures of corporate financial performance and incentive compensation plans that encourage managers to increase shareholder wealth. Special attention is given to the GAAPrelated accounting adjustments involved in EVA-type calculations. Australia Abstract: With increasing pressure on firms to deliver shareholder value.
Abstract: This paper explains the concept of Economic Value Added (EVA) that is gaining popularity in India.A General Perspective --by Asish K Bhattacharyya & B.Phani . It relied on empirical studies in U.V. It concluded that though EVA does not provide additional information to investors. This would lead to direct all efforts in creating shareholder value.S. it can be adapted as a corporate philosophy for motivating and educating employees to differentiate between value creating and value destructing activities. The paper examines whether EVA is a superior performance measure both for corporate reporting and for internal governance. 9 . The paper brings to attention the dangerous trend of reporting EVA casually that might mislead investors. and other advance economies.A.2) Economic Value Added .
Minden 11800. pp. as both models prove to be statistically insignificant. 18 June. can positive EVA (economic value added) outperform negative EVA in predicting company performance and either the period of study may play a vital role in explaining the variation of the stock return. (2000). Penang. It also indicates that. Published in African Journal of Business Management Vol. value creators have better earnings multiplier than value destroyers. This finding is contrary to findings by Turvey et al. 5(12). 4993-5000. 2011 Abstracts: In this study the major question is. The value creators had a better relationship with earnings than value destroyers and this study indicates that. Malaysia. EVA had a better relationship with stock return over a longer period of the study.3) The ability of EVA (Economic Value Added) attributes in predicting company performance by Issham Ismail School of Distance Education. Universiti Sains Malaysia. 10 . The study found that neither value creator nor value destroyer had a relationship with stock return.
Submitted to Helsinki school of economics and business administration. It also describes the framework for using the EVA as a performance measures. it measure the ultimate aim of any company. Department of accounting & finance. 3) EVA as a performance measure in the corporate world. Objective of the study: This study aimed at clarifying the concepts of EVA from the view point of controlling the business units‟ performance. 2) A review of EVA as a performance measure and its role in creation of corporate wealth. Conclusions: An author comes to conclusion that in spite of having shortcomings. Though it is a simple measure. It includes three main chapters namely: 1) The theory behind economic value added. 11 .4) Economic Value Added as a Management Tool Master‟s thesis. the increase or decrease in shareholders‟ wealth. it is neither new nor popular but still it is eye opening. Simply speaking. the thought like –company‟s profit must cover the capital cost. EVA is a simple tool to measure the performance. Firstly the study describes the meaning and nature of EVA.
Chapter 2 The concept Of Economic value added 12 .
however. “The Quest for Value”. Old profit concept fails to indicate clear surplus.e.e. Peter Drucker claimed that he discussed EVA in 1964 in his book. “Managing for Results”. ROCE > K0). 13 . any profit earned over and above the cost of capital is Economic Value Added. without going into argument as to who invented EVA first that the concept became popular only after Stern Stewart & Co. a business should earn sufficient profit to cover its cost of capital and create surplus to grow. marketed it. Just earning profit is not enough. Bennett Stewart in his book. The basic proposition is that the Return on Capital Employed should be greater than the Cost of Capital (i.INTRODUCTION EVA i. It cannot be denied. “The Quest for Value” was published in 1991. Stated simply. used the term EVA with a symbol ™ Thus EVA is actually Stern Stewart & Co. of New York City (USA). The traditionally used profit indicators are ineffective parameters in explaining whether the reported profit covers the cost of capital.‟s trademark for a specific method of calculating economic profit. economic value added is a registered trade mark by Stern Stewart & Co.
WACC represents Weighted Average Cost of Capital. EVA focuses on clear surplus in contradiction to the traditionally used profit available to the shareholders. Where. management and shareholders. Ability to generate Economic Value Added is the only test of profit adequacy. NOPAT means Net Operating Profit before Interest and after Tax. 14 . Traditionally.WHAT DO WE MEAN BY EVA? Simply speaking. Any surplus generated from operating activities over and above the cost of capital is termed as EVA. Ability to maintain dividend is not a test of profit adequacy. EVA means the surplus of net profit over capital charges or cost of capital. Definition: EVA is an estimate of the amount by which earnings exceed or fall short of the required minimum rate of return for shareholders or lenders at comparable risk. Formula for calculating EVA: = NOPAT – WACC X Capital Employed. Profit after Tax is shown in the Profit & Loss Account to indicate the profit available to the shareholders. Surplus should be derived by deducting cost of capital from profit before interest but after tax. It is a new measure of corporate surplus that should be shared by the employees. both preference and equity. It is used by companies as a performance indicator and also as a basis for executive compensation.
It is sometimes alleged that EVA talks too much about the shareholders value added rather than focusing on the interest of all stakeholders. Under CAPM Cost of Equity (Ke) is given by the following Ke = Rf + β ( Rm – Rf) Where. Rf = Risk free return. To avoid this difficulty. abnormally high or low market related cost of equity may be obtained. Rm = Market expected Rate of Return β = Risk Co-efficient.Capital Employed = Net Block + Trading Investment + Net Current Assets. But EVA is a powerful performance measurement tool and it is argued that if a company is able to serve its shareholders then it can better serve all other stakeholders also. and if annual market return and yearly beta of a company are chosen for finding cost of equity. one may apply “Long run approach”. Both market return and Beta are highly volatile. which are required only for corporate reporting purposes. While deriving EVA it becomes necessary to make certain accounting adjustments. It is free from subjective assumption that needs to be adopted while identifying profit and cost of capital. 15 . The founders of EVA traditionally use CAPM. Cost of equity is derived on the basis of Capital Assets Pricing Model (CAPM).
Capital Charges (Invested Capital x Cost of Capital) --------------------------------------------------------Economic Value Added (EVA 16 .Taxes --------------------------------------------------------Net Operating Profit after Tax (NOPAT) .Operating Expenses --------------------------------------------------------Operating Profit (EBIT) .CALCULATING EVA Net Sales .
NOPAT is the net operating profit after tax. Or EVA Calculation: EVA = net operating profit after taxes – a capital charge [the residual income method] Therefore EVA = NOPAT – (c × capital). or alternatively EVA = (r x capital) – (c × capital) so that EVA = (r-c) × capital [the spread method. with adjustments and translations. the capitalization of brand advertising and others non-cash items. or excess return method] 17 . is the weighted average cost of capital (WACC).If we calculate by using formula then EVA = NOPAT – COC Or where: . is the economic capital employed. generally for the amortization of goodwill. is the Return on Invested Capital (ROIC).
18 . 2) Weighted average cost of capital Weighted average cost of capital or WACC or COC is a minimum rate of return required to justify the use of fund invested for carrying on the business or scale of operation. their opportunity cost. Except adjusting the net profit by adding noncash items like depreciation and amortization. The cost of capital is the minimum rate of return on capital required to compensate investors (debt and equity) for bearing risk. We will be covering these adjustments later on in this report. But here we are concerned with the adjusted net profit.THREE PILLARS FOR CALCULATING ECONOMIC VALUE ADDED 1) Adjusted net profit after tax 2) Weighted average cost of capital 3) Capital employed 1) NOPAT: NOPAT is profits derived from a company‟s operations after cash taxes but before financing costs and non-cash bookkeeping entries. It is the total pool of profits available to provide a cash return to those who provide capital to the firm. there are some other accounting adjustments that we have to consider at the time of calculating Economic Value Added of the company.
19 . net of depreciation.3) Capital employed Capital employed can be calculated by total of fixed assets plus net of current assets minus current liabilities. It can be calculated as the sum of interest-bearing debt and equity or as the sum of net assets less non-interest-bearing current liabilities (NIBCLs). Capital employed is the amount of cash invested in the business.
goodwill. By doing so.ACCOUNTING ADJUSTMENTS IN EVA Although EVA is a measure of accounting profitability. Such items are deferred tax. 2) Differed tax: This situation arises due to timing difference between taxable income and book income recognized under GAAP. The logic behind such adjustments is that certain expenses which are to be capitalized are charged to income statement which lowers the income or we can say that the operating income is misstated. But unless it is capitalized we can get a clear picture of capital invested. 1) Research and Development expenses: Most of the companies consider the R&D expense as cost. So for adjusting the amount of R&D. we have to add back this amount to operating profit. expense related to R&D etc which are to be adjusted. The biggest source of differed tax is depreciation on fix assets. Normally this situation results in to more book income than the taxable income hence 20 . For improving the precision of EVA. However any temporary deference between book income and taxable income will give rise to the differed tax. At the same time the investment base in the balance sheet will also be reduced. of future years of benefits. the managers will be sowing higher ROI then the actual. And we have to write off or amortize the amount equals to total amount divided by no. it is not bound by the accounting conventions. we have to add this figure to owner’s equity. we can make some adjustments.
LIFO has a serious drawback. the companies can use the LIFO method for inventory costing. LIFO offers a considerable tax advantage in the situation of rising prices. inventory is under stated which understates the net assets and capital invested. the LIFO layer of old product cost is created. When inventory increases in any year. It also generates the cost of sales which is equivalent to replacement cost of inventory in the rising prices. resulting in better matching of revenues and expenses. The adjustment is done by adding or subtracting the change in differed tax to NOPAT that year. which happens when inventory decrease during the year. 3) LIFO reserves: In some countries. companies using LIFO report “LIFO reserve” in the notes to their financial statements which reports the difference between carrying value of inventory and its cost. First. when old inventory is liquidated. The amount of the reserve is added to invested capital and the year – on – year increase(decrease) in the LIFO reserve is added back to (subtracted from) NOPAT. Secondly. 21 . The situation of differed tax asset can also arise when companies make provision for future cost which reduces the current book income that are not tax deductible until the company actually spend the cash amount in a latter accounting years. Old LIFO layer creates to problems for EVA. This over valuation accurse due to matching of low cost against current level of revenue or sales price.differed liability. both EVA and operating income during the year are over stated. For overcoming this problem.
that goodwill too must be added to capital. 22 . So EVA analysts consider this noncancelable operating leases to be „Debt equivalents‟. we have to add back the written off goodwill. In addition all prior cumulative amortizations must be added back to capital. Although the lease is considered to be the form of secured lending. because a portion of lease payment also includes the implied interest cost of lease. This accounting treatment not only understates the capital invested but also NOPAT. 5) Operating lease: Leasing is the most common form of financing machines. If the goodwill is tax deductible then the adjustment is made on an after tax basis. Such contracts are known as operating lease. As far as accounting is concerned such lease payments are considered as rent payment. If the goodwill was written off at the time of acquisition of the company. But as far as EVA is concerned both the approaches are wrong because the write off or amortization of goodwill reduces the value of assets and capital invested which shows the rosy picture of ROI. And the asset acquired through lease is not capitalized. The write off of goodwill weather at the time of acquisition or gradually in subsequent years may differ from country to country. Any amortization is added back to capital and NOPAT. companies are often able to structure their lease contract in such a way as to keep the debt off the balance sheet.4) Goodwill: Goodwill arises when a company acquires another company at more price than the faire market value of all identifiable assets net of liabilities. So as to avoid these practices. building and other long term fixed assets.
There are more than 150 such adjustments specified by EVA analysts. The adjustment for interest expense is calculated by multiplying the capitalized value of lease by borrowing rate. This amount is added to NOPAT net of tax shield on interest. The adjustments are to be made only if The amounts are significant The managers can influence the outcomes of the item being adjusted.The adjustment is made by adding present value of future lease payments discounted at companies cost of debt for invested capital. Snap shot of adjustments that are required to be made for calculating the EVA 23 . But the most of the companies make adjustments fewer than 5 so as to keep the system less complicated or easy. Non financial professionals can also understand the adjustments. The required information is readily available.
ECONOMIC VALUE ADDED MODEL 24 .
performance measurement 3.THE USES OF ECONOMIC VALUE ADDED Basically EVA i. capital budgeting 7. EVA can be used for the following purposes: 1. corporate valuation 8.e. motivation of managers 6. communication with shareholders and investors 5. But it has a lot of practicable implications. determining bonuses 4. analyzing equity securities 25 . economic value added is performance measure. setting organizational goals: 2.
we have to see the limitations of conventional measure that is ROI. EVA helps overcome the goal incongruence that exists between the manager and the firm in this situation. The primary limitation of ROI is that it can encourage managers. to make investment divisions that are in their own best interests. while not being in the best interests of the company as a whole. So the manager of a particular division will be least bothered about the company‟s performance so the problem of goal congruence will arise. Using EVA instead of ROI to reward the printing division manager would motivate her to accept any investment alternatives that generate a return greater than the company's 10% cost of capital 26 . who are evaluated and rewarded based solely on this measure.STRENGTH AND LIMITATIONS OF EVA To understand the strength of EVA.
Highly profitable orders may be expedited at the end of the accounting period and shipped to the customers a few weeks before the agreed-upon delivery date. Financial orientation 3. it does not control for size differences across organizational units like ROI does. First. Two examples will help illustrate this point. Short-term orientation 4. A larger plant or division will tend to have a higher EVA relative to its smaller counterparts. 2) Financial Orientation: EVA is a computed number that relies on financial accounting methods of revenue realization and expense recognition. this measure has four limitations that are presented under the following headings: 1. Results-orientation 1) Size Differences: EVA does not control for size differences across plants or divisions.LIMITATIONS OF EVA Despite EVA's advantage over ROI. while less 27 . managers can manipulate these numbers by altering their decision making processes. managers can manipulate the revenue recognized during an accounting period by choosing which customer orders to fill and which to delay. If motivated to do so. While EVA is more effective than ROI at aligning plant managers' goals with corporate goals. Size differences 2.
it creates a disincentive for managers to invest in innovative product or process technologies. The costs or expenses associated with the project are recognized. 28 . therefore. at least in part. every investment in innovation has the same economic profile. Each of these examples reflects a choice on the part of managers for personal gain over corporate welfare 3) Short-Term Orientation: EVA overemphasizes the need to generate immediate results. The project which can create the benefit for long time can be neglected by the EVA. managers may decide not to replace completely depreciated assets. After all. Keeping the outdated equipment on the accountant's books lowers the asset base and ensures that no depreciation expense charges are recognized. however. The benefits or revenues associated with the initiatives are not recognized by the accountants until a few years down the road. product quality and customer satisfaction may suffer if outdated manufacturing equipment continues to be used.profitable orders may be delay and shipped after the end of the accounting period and after the agreed-upon delivery date. The net effect for managers investing in innovation is a lower EVA in the current period. So it‟s a short term orientation. The end result of this scenario is a boost to current period EVA and an adverse blow to customer satisfaction and retention Second. thereby increasing EVA. by the accountants immediately.
but they do not help offer solutions to the nonaccounting business managers who are responsible for continuously improving the value delivered to customers. Like its predecessor financial metrics. EVA is guilty of this charge 29 .4) Results Orientation: The accountants' reports state the obvious .that performance was less than expected .
A project EVA can be incremental (net profit impact minus the cost of capital impact). The following table shows the comparison between Economic value added and other matrices for performance measurement.e. EVA can be a performance measurement of ongoing business results. cost of capital.EVA V/S Other Performance measures. 30 . and can also be utilized in a project justification of future investment projects. or absolute (resultant P & L and Balance Sheet). In above mentioned comparison chart we can clearly make an inference that other performance measures do not consider the opportunity cost i.
BSC encourages staff to contribute to the changes of objectives through communication and motivation. BSC is non financial measure to coordinate and operate the goal while the EVA is a financial measure to improve the financial performance as well as for creating the value to the shareholders. It indicates the company‟s capacity to earn more than the cost of fund invested. 31 . While EVA is a measure to create value addition. BSC has the capability to target all actions at implementing strategic goals and objectives. subordination of indicators regarding financial results. A main objective of this system is to direct the organization on the right path in order to reach the company's goals. BSC first came about after studies of multiple methods was evaluated regarding performance efficiency. cause and effect. and three. ECONOMIC VALUE ADDED The balanced scorecard is a preferred method because it can be used in conjunction with other performance systems. The balanced scorecard (BSC) is a system that coordinates and operates with goals and objectives of the company. BSC also has the ability to link budgets and strategies with the assistance of analysis.BALANCED SCORECARD VS. The BSC method is based on several factors: One. But BSC and EVA are more complimentary to each other than contradictory to each other. two. BSC also helps to create motivation for staff of all education and experience levels. relation of indicators which the company can measure within certain periods and also indicate which of these can be evaluated right away. BSC includes the objective of adding value to the company's goals. this is to make the flow continuous.
HOW DOES IT CREATE VALUE? The ultimate aim of the concepts like Economic Value added is to create value for the company as well as share holders. Stock prices reflect the future EVA expectations. while not taking into account of the cost of capital or investment. It is the norm nowadays for companies to only declare profit that. The company is running in losses after deducting cost of capital. We can examine the contribution made by EVA in value creation by studying the following propositions which represents the relationship between various factors. in case of negative EVA i. It means the company had excess real profit that the company gained after deducting cost of investment by investors from net profit. Those expectations are very uncertain and continuously changing and thus also stock prices are volatile 32 . market value added discussed in this report latter on. Microsoft and Nokia trade many times above their book values.EVA.e. This is clearly reflected in the concept of MVA i. This companies are known as value destroyers where as formers are known as value creator. NOPAT is not enough to cover cost of capital. As far as the stock prices are concerned. the bigger is the market value of the company and the stock price Especially profitable growth (growth in EVA) gears up stock prices. Therefore companies like Intel. 1) The relationship between positive and negative EVA with stock return Positive EVA means the company is experiencing an excess of dollar amount of net operating profit after tax (NOPAT) after deducting the dollar charge for capital (both debt and equity) which is obtained by multiplying the percentage of weighted average cost of capital (WACC). the bigger expected EVA the company has.e. In contrast.
they might also have higher profits and good accounting indicators. Companies that have positive EVA value or value creator companies have a strong accounting returns and better market positions. This again will be indicating that.2) The relationship between positive and negative EVA with accounting performance. EVA builds the team spirit by removing goal incongruence and we can improve financial as well as overall performance of an organization. 33 . Simply speaking. Returns on investment made by this type of company will also be higher than returns expected by the investors. In addition. the company is well organized in reaping higher returns exceeding investor‟s expectations. since a positive EVA is indicative that companies have high excess profit after deducting cost of investments.
MARKET VALUE ADDED. Successful companies earns more return than the cost of capital so they sells the share in market at premium over and above the book value of shares it means the company has added the value to the wealth of share holders. market value added tells us how much value the company has added or subtracted from the share holders investment. This is the basic assumption. This concept is known as MVA i.THE CONCEPT OF MVA I.e. Market value added = market value of equity – book value of equity. Market value added. EVA is aimed to create value for share holders. Market value added = company’s total market value – capital invested As the market value and book value of debt are same. Because returned earned greater than cost of capital creates the wealth for the share holders and vice versa. The only difference is market value to book value ratio is a relative measure while MVA is an absolute measure. MVA. Whether the company has created MVA or not depends on the level of rate of return as 34 . Market value added is identical by meaning with market to book value ratio. the real owners of the company. The equity also includes the equity equivalents like reserves and surplus. For listed company stewart defined another measures to check whether the company has created value for share holders or not. If the total market value of the firm is more than the capital invested then it is known as MVA. what does it indicate? According to stewart . we can be more specific.E.
compared cost of capital. The following chart will better indicate the relation between EVA and MVA. of Equity = Book value of Equity + Present value of all future EVAs. 35 . Thus. Marketing Value Added = Present Value of all future EVAs. Thus positive EVA means positive MVA and vice versa. Thus. M. All these factors apply to the EVA.V.
Chapter 3 Conclusion 36 .
EVA indicator can lead to changes in the corporate culture. two. we can conclude some of the points as follow.i.CONCLUSIONS EVA . Economic Value Added. while adding value to investments. EVA shows the difference between investments returns and the cost of resources. The main objective of EVA is to add value to the company. The economic value added (EVA) is generally used to measure the efficiency in which the organization uses resources. EVA is a financial management system that offers a firm basis for decision making. a concept developed by stewart is a type of financial performance measurement. business owners invest capital to get profits. minus the capital value. After studying each aspects of EVA. The main objectives of EVA are: one. the company personnel aims at increasing shareholders value through motivation . monitor. EVA indicator has the capability to balance interests of managers and shareholders. The economic value added method is an estimate of profits which is calculated by using the net operation profit after taxation. 37 . and measure decisions.e. This study contains each and every aspects of the concept called EVA. as well as the capability to make. EVA became a tool of return on investments and return on capital employed. and three. the company is wanting to get additional profits.
Chapter 4 Bibliography 38 .
Fountainebleau.joinfreearticles. Websites: www. Copy right © 1998 INSEAD. Published in Vidyasagar University Journal of Commerce Vol. 39 . Tata McGraw Hill Education Private Ltd.11. a note prepared by S David Young.com www.evanomix.V. Professor at INSEAD. Debdas Rakshit. By Robert Anthony & Vijay Govindarajan. Book: Management Control System.net References: 1) Eva based performance measurement: a case study of Dabur India limited. March 2006.valuebasedmanagement. 67-86.investopedia. Twelfth edition.BIBLIOGRAPHY & REFERENCES. Tracey (2001) Economic Value-Added: A Review of the Theoretical and Empirical Literature. Distributed by European case clearing house in USA and UAE. 2) Worthington. Department of Commerce.com www.com www. Asian Review of Accounting 9(1):pp. Burdwan – 713104. The University of Burdwan.A General Perspective Asish K Bhattacharyya & B. 3) Economic Value Added . Andrew and West.Phani 4) Economic Value Added. Faculty Member. France.
40 .BIBLIOGRAPHY & REFERENCES.joinfreearticles.Phani 4) Economic Value Added.com www. Department of Commerce. Websites: www. Tracey (2001) Economic Value-Added: A Review of the Theoretical and Empirical Literature. Distributed by European case clearing house in USA and UAE.A General Perspective Asish K Bhattacharyya & B. March 2006.com www. Asian Review of Accounting 9(1):pp.V. France. 67-86. By Robert Anthony & Vijay Govindarajan. 2) Eva based performance measurement: a case study of Dabur India limited. Worthington. Faculty Member. The University of Burdwan. Twelfth edition. Copy right © 1998 INSEAD. Andrew and West.net References: 1) Debdas Rakshit.investopedia.11. Burdwan – 713104. a note prepared by S David Young. Tata McGraw Hill Education Private Ltd.com www. Fountainebleau.evanomix. 3) Economic Value Added . Published in Vidyasagar University Journal of Commerce Vol. Professor at INSEAD. Book: Management Control System.valuebasedmanagement.