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PERFORMANCE TREND AND PERFORMANCE CURRENT RATINGS BY ECONOMIC VALUE ADDED (EVA) Abstract: The Economic Value Added (EVA) is an index of „durable development.” It was proposed by the Stern-Stewart Office and represents the true economic profit of companies. A company reports economic profit only if the reported accounting profit is higher than the opportunity cost of equity. The authors of the EVA model (Stern-Stewart) have also proposed the ways of restating the financial statements to get a “fair image” of the results, thus eliminating the “accounting distortions.” Based on the performance indexes calculated based on EVA and second-generation indexes relating to EVA, we calculated two types of rating: Rating Performance Current and Rating Performance Trend. The rating is calculated by means of the percentiles technique and the results are split into 22 rating classes. The used database is Russell 3000

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  • ALEXANDRU BOGEANU Author-Workplace-Name: The Bucharest University of Economic Studies
  • ELENA CLAUDIA SERBAN Author-Workplace-Name: The Bucharest University of Economic Studies
  • VASILE ROBU Author-Workplace-Name: The Bucharest University of Economic Studies

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  • ALEXANDRU BOGEANU Author-Workplace-Name: The Bucharest University of Economic Studies & ELENA CLAUDIA SERBAN Author-Workplace-Name: The Bucharest University of Economic Studies & VASILE ROBU Author-Wo, 2013. "PERFORMANCE TREND AND PERFORMANCE CURRENT RATINGS BY ECONOMIC VALUE ADDED (EVA) Abstract: The Economic Value Added (EVA) is an index of „durable development.” It was proposed by the Stern-Stewart Offi," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 64-84, October.
    • Handle: RePEc:cbu:jrnlec:y:2013:v:5:p:64-84
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    References listed on IDEAS

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    1. G. Bennett Stewart, 1994. "Eva™: Fast And Fantasy," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(2), pages 71-84, June.
    2. Ahmad Ismail, 2006. "Is economic value added more associated with stock return than accounting earnings? The UK evidence," International Journal of Managerial Finance, Emerald Group Publishing, vol. 2(4), pages 343-353, September.
    3. Young, David, 1997. "Economic value added: A primer for European managers," European Management Journal, Elsevier, vol. 15(4), pages 335-343, August.
    4. Robert T. Kleiman, 1999. "Some New Evidence On Eva Companies," Journal of Applied Corporate Finance, Morgan Stanley, vol. 12(2), pages 80-91, June.
    5. Andrew C. Worthington & Tracey West, 2004. "Australian Evidence Concerning the Information Content of Economic Value-Added," Australian Journal of Management, Australian School of Business, vol. 29(2), pages 201-223, December.
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