ECONOMIC VALUE ADDED (EVA) - LITERATURE REVIEW AND RELEVANT ISSUES

Abstract

Economic Value Added is recognized as an important tool of performance measurement and management. This tool is introduced by Stern Stewart & Co trademarks in 1990s and subsequently adopted by several major corporations. EVA is a better performance measures than other performance measures from the point of view of many literatures. However, some studies reject the superiority of EVA partially or fully. So, present study has been conducted to find out various issues underlying EVA. This study aims to summarize theoretical perspectives as well as practical experience applying the EVA in the world, thereby helping to shape the trend and ability to apply in practice corporate governance as well as study in Viet Nam. This study provides a classification scheme, identifies the gaps in existing literature and suggests the direction for future research. The research method used in this study is almost identical to that used in Anil K. Sharma & Satish Kumar (2008) which review of 112 papers published on the EVA from 1994 to 2008 and additional review of EVA studies conducted from 2009 to 2017.