An Analysis Of EVA And Other Measures Of Firm Performance Based On Residual Income
- Topics:
- Strategic Management Tools
- Tags:
- Analysis,
- Social Science Electronic Publishing Inc.,
- Sales Force Management,
- Sales,
- Performance Management,
- Performance,
- Operational Accounting,
- Income,
- Human Resources,
- Finance,
- ...
FREE Registration is required
Overview: From the executive summary: ‘The paper reviews the theoretical foundations of residual income as a tool for evaluating a firm's interim performance for purposes of assigning incentive compensation. Although residual income can be easily linked to the discounted cash flow model of firm valuation, it bears no necessary relation to wealth creation during any particular time period. Consequently, paying for performance using residual income to measure wealth creation can have incentive effects that are inconsistent with wealth creation’.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 228KB | Date: May 2003 | Pages: 30




