New Metrics for Value-Based Management Enhancement of Performance Measurement and Empirical Evidence on Value-Relevance
Value-Based Management, a widely applied reference for strategic management, aims at maximizing sustainable shareholder value creation. However, respective accounting metrics to measure the firm’s wealth creation, such as residual income and Economic Value Added (EVA®), are distorted by accounting d...
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| Format: | eBook |
| Language: | English |
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Wiesbaden
Gabler Verlag
2009, 2009
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| Edition: | 1st ed. 2009 |
| Series: | Unternehmensführung & Controlling
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| Subjects: | |
| Online Access: | |
| Collection: | Springer eBooks 2005- - Collection details see MPG.ReNa |
| Summary: | Value-Based Management, a widely applied reference for strategic management, aims at maximizing sustainable shareholder value creation. However, respective accounting metrics to measure the firm’s wealth creation, such as residual income and Economic Value Added (EVA®), are distorted by accounting depreciation, implying inconsistent investment disincentives. Annette Holler introduces two new depreciation-adjusted value metrics and illustrates the depreciation-related bias in a case study. Finally, a regression analysis adds to previous evidence on associations between value creation and stock returns as well as firm values |
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| Physical Description: | XXI, 217 p. 32 illus online resource |
| ISBN: | 9783834984005 |