Measuring a company's performance: Economic value added in comparison with traditional performance measures

Abstract

The choice of a suitable indicator for measuring a company's performance is one of the most widely discussed areas in today's corporate management circles. This paper attempts to analyse a company's performance through different indicators. The case study presented in this paper reveals that value-based measures represented by Economic Value Added (EVA) should have a commanding role in corporate management strategy, and traditional income measures should act as a facilitator for providing supporting information.