Value Creation and its Measurement: A Critical Look at EVA
Value Creation and its Measurement: A Critical Look at EVA ArXiv ID: ssrn-163466 “View on arXiv” Authors: Unknown Abstract SUBJECT AREAS: Corporate Finance, Valuation, Capital Budgeting, Investment Policy, Economic Value Added, EVA, Market Value Added, MVA, Net Present Value, NPV, c Keywords: Corporate Finance, Valuation, Capital Budgeting, Economic Value Added (EVA), Net Present Value (NPV), Corporate Equity Complexity vs Empirical Score Math Complexity: 6.5/10 Empirical Rigor: 2.0/10 Quadrant: Lab Rats Why: The paper employs advanced mathematical concepts like NPV, WACC, and discounted cash flow formulas, with detailed derivations and algebraic comparisons, but lacks any backtesting, datasets, or implementation-focused evidence, focusing instead on theoretical critique and conceptual analysis. flowchart TD A["Research Goal<br>Assess EVA's Value Relevance"] --> B["Data & Sample<br>Public Corporations"] B --> C["Methodology<br>Regression Analysis"] C --> D{"Computational Process<br>Compare EVA vs NPV"} D --> E["Key Finding 1<br>EVA Strongly Predicts MVA"] D --> F["Key Finding 2<br>NPV Superior for Capital Budgeting"] E & F --> G["Outcome<br>Critical Look at EVA Measurement"]