Implications of the Eva model use in the firm resources’ performant allocation plan

Citation

(2011), "Implications of the Eva model use in the firm resources’ performant allocation plan", International Journal of Accounting & Information Management, Vol. 19 No. 2. https://doi.org/10.1108/ijaim.2011.36619baa.007

Implications of the Eva model use in the firm resources’ performant allocation plan

Article Type: Abstracts From: International Journal of Accounting and Information Management, Volume 19, Issue 2

The subject of the present paper is the EVA model and its use by the companies, as a management or result measuring instrument. The EVA method can represent a possible answer to these new strategic requirements, being adopted more and more diffuse, as a consequence of the globalization process, even in the sphere of the systems or countries distanced culturally or institutionally from the Anglo-Saxon reality, where its origin is. Moreover, resorting to this entitling of “model” or “method” called EVA resumes to highlighting the importance of this indicator in its consideration as a performance measurement instrument, the usage of the term “model” is due especially to the fact that the EVA represents a multitude of fundamental theories that are at the base of the modern economic finances. Its increasing use inserts perfectly in this finance and strategies integration context, also existing the possibility to represent the mean through which new judgments of economical reality interpretations are introduced in the companies, thus increasing the communication and fine-tuning capacity towards the financial community, a more and more important element in the attraction dynamic of the products necessary for the growing process of the company. Second of all, EVA can become a reference parameter around which can be constructed a coherent and integrated management system, orientated to producing added value, and that can include economical objectives establishment, activity planning, performance evaluation, management motivation, portfolio activity management, capital budgeting choosing, company culture changing and least of all financial communication.

Keywords: EVA model, Evaluation method, Performance, Resources, Company

Ionel BostanŞtefan cel Mare University of Suceava, Suceava, RomaniaDorel MateşWest University of Timişoara, Timişoara, RomaniaElena Hlaciuc, Veronica Grosu, Eugenia Iancu and Marian SocoliucŞtefan cel Mare University of Suceava, Suceava, Romania