Economic value added as an instrument of the efficiency´s evaluation in the conditions of the Czech capital market

Růčková, Petra (2008): Economic value added as an instrument of the efficiency´s evaluation in the conditions of the Czech capital market.

Abstract

This paper defines economic value added as an instrument of the efficiency’s evaluation in the Czech capital market. EVA is a new evaluation criterion of efficiency in the Czech Republic and in practice it is not much applied in the Czech companies. EVA is just used for big companies. Typical representatives of these companies are companies on the Prague Stock Exchange. The intention of this paper is to evaluate companies on the Prague Stock Exchange according to the way how they embody EVA and whether these companies have a larger ROE than the costs of equity.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic value added, economic profit, book profit, costs of a shareholders´s capital, profitability of a shareholders´s capital, risk free interest rate
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill

References

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RŮČKOVÁ, P.: Finanční analýza, metody, ukazatele a využití v praxi. Praha: Grada Publishing 2007. ISBN 978-80-247-1386-1

RŮČKOVÁ, P. The Relationship of Management of Capital Structure and Ratios of Profitability in the Select Firms. In.: „The 4th International Symposium ECONOMY & BUSINESS 2005: Economic Development and Growth“. Bulharsko: Bulgarian Academy of Science, Union of Scientists in Bulgaria 2005. ISBN 954-9368-12-2

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