School of Business
McGorman, Jason, "EVA: An Effective Tool for Measuring Performance" (2007). Senior Honors Theses. 139.
In a time where corporations measure performance and wealth creation based on accounting principles, this study explored the effectiveness of an economic measure of performance known as Economic Value Added (EVA). This paper examined the importance of corporate governance and EVA, the importance of ethics in the creation of shareholder wealth, the benefits of using EVA as an internal control tool for the decision-making process and evaluating performance, and the profitability of ethics. In addition it compared EVA with other profitability measures, discussed how to successfully implement ethics, and concluded with a summary of the effectiveness of EVA as an internal control tool in corporate governance.