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An overview of the implementation of Economic Value Added (EVA™) performance measures in South Africa
Southern African Business Review
View Archive Info| Field | Value | |
| Title |
An overview of the implementation of Economic Value Added (EVA™) performance measures in South Africa
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| Creator |
van der Poll, HM
Booyse, NJ Pienaar, AJ Büchner, S Foot, J |
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| Subject |
EVA™, Economic Value Added, performance metrics, performance measurement
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| Description |
Although Economic Value Added (EVA™) might improve themeasurement of organisations’ performance, it seems not to be usedwidely in South Africa. The need to measure financial performanceand the different metrics that can be used should be investigatedto establish the best measure for each sector. The purpose of thereported study was to determine the extent to which EVA™ is usedby South African organisations. Furthermore, this investigationfocused on methods used by these organisations to calculate EVA™and aimed to determine the South African business sectors in whichit is most likely to be implemented. A focus group discussion wasconducted with financial experts, which included consultants,analysts and statisticians, to discuss EVA™ and challenges relating toits implementation. It was established that South African companieswill benefit from using EVA™ in conjunction with other metrics.Management needs to understand its own organisation to be able toimplement the most appropriate performance metric applicable tothe organisation. It is recommended that companies do a thoroughinternal analysis of their organisations to assist them in making aninformed decision regarding the appropriate performance metric,which includes EVA™.
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| Publisher |
College of Economic and Management Sciences (UNISA)
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| Contributor |
—
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| Date |
2013-02-15
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
https://www.ajol.info/index.php/sabr/article/view/76408
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| Source |
Southern African Business Review; Vol 15, No 3 (2011); 122-141
1998-8125 1561-896X |
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| Language |
eng
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| Relation |
https://www.ajol.info/index.php/sabr/article/view/76408/66866
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| Rights |
Copyright on articles is retained by the author(s). The editor and reviewers of SABR cannot accept any responsibility for the infringement of authors' rights or copyright.
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