Publication Date
4-24-2008
School
School of Business
Major
Business: Finance
Primary Subject Area
Economics, Finance
Disciplines
Finance and Financial Management
Recommended Citation
Houle, Michael D., "Economic Value Added" (2008). Senior Honors Theses. 38.
https://digitalcommons.liberty.edu/honors/38
Abstract
Economic Value Added (EVA), when applied properly in a company, impacts all departments and decisions. The equation for EVA as well as the adjustments that must be made to current accounting practices is the basis for an understanding of EVA. The success of EVA is displayed as companies that have implemented EVA to varying degrees are compared with companies that have not implemented EVA. Once the argument for the overall superiority of EVA is made, traditional performance measures and current accounting practices are evaluated. Then, the importance of creating value within corporations becomes apparent. Finally, a detailed example of the implementation process that took place several years ago at Harsco argued in favor of all companies adopting EVA.
