Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon

Rosa Maria Morgado Galvão; Ana Bela de Sousa Delicado Teixeira; Sandra Cristina Dias Nunes

doi:doi:10.11648/j.ijafrm.20200501.13

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Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon

Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes

Published in International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 1)

Received: 24 December 2019 Accepted: 2 January 2020 Published: 10 March 2020

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Abstract

Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 5, Issue 1) This article belongs to the Special Issue Perspectives on Risk Management and Impact on Sustainability of Companies
DOI	10.11648/j.ijafrm.20200501.13
Page(s)	26-39
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Value Creation, EVA®, Value-Based Management, Value Drivers

References

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APA Style

Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. (2020). Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. International Journal of Accounting, Finance and Risk Management, 5(1), 26-39. https://doi.org/10.11648/j.ijafrm.20200501.13

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ACS Style

Rosa Maria Morgado Galvão; Ana Bela de Sousa Delicado Teixeira; Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int. J. Account. Finance Risk Manag. 2020, 5(1), 26-39. doi: 10.11648/j.ijafrm.20200501.13

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AMA Style

Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int J Account Finance Risk Manag. 2020;5(1):26-39. doi: 10.11648/j.ijafrm.20200501.13

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@article{10.11648/j.ijafrm.20200501.13,
  author = {Rosa Maria Morgado Galvão and Ana Bela de Sousa Delicado Teixeira and Sandra Cristina Dias Nunes},
  title = {Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {1},
  pages = {26-39},
  doi = {10.11648/j.ijafrm.20200501.13},
  url = {https://doi.org/10.11648/j.ijafrm.20200501.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200501.13},
  abstract = {Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.},
 year = {2020}
}

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TY  - JOUR
T1  - Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon
AU  - Rosa Maria Morgado Galvão
AU  - Ana Bela de Sousa Delicado Teixeira
AU  - Sandra Cristina Dias Nunes
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200501.13
DO  - 10.11648/j.ijafrm.20200501.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 26
EP  - 39
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200501.13
AB  - Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.
VL  - 5
IS  - 1
ER  -

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Author Information

Rosa Maria Morgado Galvão
Ana Bela de Sousa Delicado Teixeira

School of Business Administration, Polytechnic Institute of Setúbal, Setúbal, Portugal
Sandra Cristina Dias Nunes

School of Business Administration, Polytechnic Institute of Setúbal, Setúbal, Portugal

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APA Style

Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. (2020). Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. International Journal of Accounting, Finance and Risk Management, 5(1), 26-39. https://doi.org/10.11648/j.ijafrm.20200501.13

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ACS Style

Rosa Maria Morgado Galvão; Ana Bela de Sousa Delicado Teixeira; Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int. J. Account. Finance Risk Manag. 2020, 5(1), 26-39. doi: 10.11648/j.ijafrm.20200501.13

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AMA Style

Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int J Account Finance Risk Manag. 2020;5(1):26-39. doi: 10.11648/j.ijafrm.20200501.13

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@article{10.11648/j.ijafrm.20200501.13,
  author = {Rosa Maria Morgado Galvão and Ana Bela de Sousa Delicado Teixeira and Sandra Cristina Dias Nunes},
  title = {Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {5},
  number = {1},
  pages = {26-39},
  doi = {10.11648/j.ijafrm.20200501.13},
  url = {https://doi.org/10.11648/j.ijafrm.20200501.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20200501.13},
  abstract = {Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon
AU  - Rosa Maria Morgado Galvão
AU  - Ana Bela de Sousa Delicado Teixeira
AU  - Sandra Cristina Dias Nunes
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijafrm.20200501.13
DO  - 10.11648/j.ijafrm.20200501.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 26
EP  - 39
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20200501.13
AB  - Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.
VL  - 5
IS  - 1
ER  -

Copy | Download