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Comparative Analysis Of Value-Added And Traditional Measures Of Performance: An Efficiency Score Approach

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  • Acheampong, Yvonne J.
  • Wetzstein, Michael E.

Abstract

Stochastic frontier analysis is employed for a comparison of value-added and traditional measures of performance. Results indicate value-added measures are not significantly different from traditional measures of performance and thus little if any information is gained by replacing traditional measures with value-added measures. However, value-added measures may be useful to managers for value creation decisions resulting in excess profits.

Suggested Citation

  • Acheampong, Yvonne J. & Wetzstein, Michael E., 2001. "Comparative Analysis Of Value-Added And Traditional Measures Of Performance: An Efficiency Score Approach," Faculty Series 16715, University of Georgia, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:ugeofs:16715
    DOI: 10.22004/ag.econ.16715
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    References listed on IDEAS

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    Cited by:

    1. Ashita Agrawal & Pitabas Mohanty & Navindra Kumar Totala, 2019. "Does EVA Beat ROA and ROE in Explaining the Stock Returns in Indian Scenario? An Evidence Using Mixed Effects Panel Data Regression Model," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(2), pages 103-134, May.
    2. Namik Erdogan & Serpil Altinirmak & Caglar Karamasa, 2016. "Performance Assessment of Real Estate Investment Trusts (REIT) Listed in BIST Via Different Multi Criteria Decision Making Methods," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(7), pages 304-304, July.
    3. Sunitha Kumaran, 2017. "Shareholder Value Index for Saudi Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(4), pages 196-212, October.

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