New Metrics for Value-Based Management [electronic resource] : Enhancement of Performance Measurement and Empirical Evidence on Value-Relevance /
Holler, Annette.author.
Value-Based Management, a widely applied reference for strategic management, aims at maximizing sustainable shareholder value creation. However, respective accounting metrics to measure the firm's wealth creation, such as residual income and Economic Value Added (EVA®), are distorted by accounting depreciation, implying inconsistent investment disincentives. Annette Holler introduces two new depreciation-adjusted value metrics and illustrates the depreciation-related bias in a case study. Finally, a regression analysis adds to previous evidence on associations between value creation and stock returns as well as firm values.
Description based upon print version of record.
Includes bibliographical references.
Fundamentals -- Development of New Value-Based Metrics -- Applied Methods for the Empirical Research -- Results -- Discussion.
Value-Based Management, a widely applied reference for strategic management, aims at maximizing sustainable shareholder value creation. However, respective accounting metrics to measure the firm's wealth creation, such as residual income and Economic Value Added (EVA®), are distorted by accounting depreciation, implying inconsistent investment disincentives. Annette Holler introduces two new depreciation-adjusted value metrics and illustrates the depreciation-related bias in a case study. Finally, a regression analysis adds to previous evidence on associations between value creation and stock returns as well as firm values.
Game theory.
Leadership.
Macroeconomics.
Management.
Game Theory, Economics, Social and Behav. Sciences.
Business Strategy/Leadership.
Macroeconomics/Monetary Economics//Financial Economics.
Management.