Urbanczyk, Edward and Jaroszewicz, Edyta Midoduchowska and Urbaniak, AgnieszkaDzczesna (2006) Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland. International Journal of Banking and Finance (IIJBF) (3-4(S)). pp. 107-117. ISSN 1675-7227

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Abstract

This paper examines the application of the increasingly popular economic value added (EVA) and cash value added (CVA) measures of financial performance of private and publicly-traded firms. EVA and CVA are measured for a sample of Polish firms. Since traditional accounting measures are not robust indicators of corporate performance of firms in transitional economies, these alternate measures provide better assessment of value/cash flow creation and solvency. The results suggest that Polish firms, though reportedly making accounting profits, are indeed unable to generate value to shareholders. Further, the cash flow measures indicate a great deal of solvency risk. Thus, we recommend the use of these EVA and CVA measures for evaluating performance of companies, especially, in transitional economies.

Item Type:	Article
Uncontrolled Keywords:	Cash value added, transitional economies, economic value added, solvency
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	01 Nov 2018 01:21
Last Modified:	01 Nov 2018 01:21
URI:	https://repo.uum.edu.my/id/eprint/25108

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