Keywords
Abstract
This thesis examines the role of Economic Value Added (EVA) in strategic financial management and its importance in improving corporate financial performance and long-term business sustainability. Economic Value Added is a financial performance measurement tool that evaluates a company's ability to generate economic profit after accounting for the cost of invested capital. The study explores how EVA supports strategic financial planning, investment decision-making, efficient capital allocation, and shareholder value creation. Particular attention is given to the advantages of EVA over traditional financial indicators, such as Return on Investment (ROI), Return on Equity (ROE), and net profit.
References
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2. Young, S. D., & O'Byrne, S. F. (2001). EVA and Value-Based Management: A Practical Guide to Implementation. McGraw-Hill, New York.
3. Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. 3rd Edition. John Wiley & Sons.
4. Biddle, G. C., Bowen, R. M., & Wallace, J. S. (1997). Does EVA Beat Earnings? Evidence on Associations with Stock Returns and Firm Values. Journal of Accounting and Economics, 24(3), 301–336.
5. Fernández, P. (2002). Valuation Methods and Shareholder Value Creation. Academic Press.