GERONIMO N_MARY COR S_MJAY H

Title of the Scientific Paper: EVA in Measurement Financial Performance

Statement of the Paper’s Research Problem

1. How to examine the Economic Value Added in terms of financial performance?
2. What is the calculation procedure to be used and approaches to measure financial
performance?

Goals, Purpose, and Significance of the Paper

The purpose of this journal is to identify the importance of economic value added in terms of its
increase to shareholders equity. It is therefore the conserving factor wherein economic profit is to
be at large the main focus of the study. Within the scope business related activity, economy is at
hand for the many the very essential target to enables the arena of economical need to stand out
amidst the occurrences and risk that may happen.

Framework Used in the Paper

This paper uses the theoretical method wherein the economic value added procedures will be
instigated at hand. According to the research, economic value added measures the financial
performance based on the residual wealth. Based on its definition, the calculated percentage was
emphasized and therefore given much importance. That is why, the main structure which are
being used is the stock exchange of Istanbul, Turkey and the other remaining countries.

Identification of Assumption(s), if applicable

Assumptions like on how to maximize the use of EVA to the extent and the company’s usage of
this term depends on the disclosure per se.

Data Collection Methods and Analysis Used in the Paper

In the proceedings, Hacı Ömer Sabancı Holding Joint Stock Company shows the highlighted
EVA compared to other stock company. The remaining stocks company are in the lowest
percentage in terms economic value added procedures as a whole.
Summary of the Results
Therefore, in the long run of measurement, it is rest assured that those who comply the best
figure are most likely transparent in terms of their manifestation to the venture of economic
profit sustainability.

Three (3) Major Points of Agreement

 In the minor term, EVA may be a tool in the focus of manager’s attention on the impact
of its decision making
 It may be used as basis of good will and shares
 It may be a decentralized way of corporate stand.

Three (3) Major Points of Disagreement

 Difficulty in the precise and correct way of equity cost in a firm
 Higher bonus to managers if they act more private of their own
 It depends upon the unit, the manager’s perspective view

Conclusions
In conclusion, I would say that the EVA term is much related to how benevolent it is for the
company to go on. As suggested, it is inclined only on the benefit of the owner in transparently
manifesting it’s essentials to the business. For further studies, it recommended to seek its
essential rather than on our own perspective as a whole.