Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/109874 
Year of Publication: 
2011
Citation: 
[Journal:] European Financial and Accounting Journal [ISSN:] 1805-4846 [Volume:] 6 [Issue:] 3 [Publisher:] University of Economics, Faculty of Finance and Accounting [Place:] Prague [Year:] 2011 [Pages:] 103-110
Publisher: 
University of Economics, Faculty of Finance and Accounting, Prague
Abstract: 
The paper is oriented to the area of management and decision making of company owners and managers. The absolute synthetic performance criterion Economic Value Added represents the criterion of the residual income and managerially measured profit. Concrete questions must be solved with the ascertainment of this financial criterion as for example how correctly to measure capital costs, how to determine the right amount of the investment capital and return on investment capital, eventually return on assets, or how to work with the time horizon in the measurement of Economic Value Added, because this criterion should be presented also as the important tool of the transformation of strategic targets on tactical time periods and to lower structural levels of investment and profitability responsibility centers. Economic Value Added should serve as one of criteria of investment decision and as criterion of the appraisal of managerial decision making, because just managers are responsible for the economical process and results of the main operating activities.
Subjects: 
Management and decision making
Performance criteria
Economic Value Added
Weighted Average Capital Costs
Owners and managers
JEL: 
M41
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.