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The student's task is to develop a comprehensive strategy for Briggs & Stratton, which is facing severe competition and margin pressures. A major component of the strategy to be considered is whether to implement economic value added (EVA) as a new performance measurement for management. The case is designed to serve as an introduction to how to compute and use EVA. It emphasizes the importance of performance evaluation as part of a larger strategic plan. A teaching note is available to registered faculty, as well as two video supplements to enhance student learning.

Due to the environmental issues caused by petroleum lubricants used in lubrication, the concept of creating various bio-lubricants requires research globally. Thus, this study aims to develop, characterize and test the base ficus carica oil (fig oil) for its ethylene vinyl acetate copolymer (EVA) and sodium dodecylbenzene sulfonate (SDBS) content.

The sample characterization was done using the Fourier transmission infrared spectrum, whereas the morphologies of the EVA, SDBS particles and lubricated surfaces were carried out under scanning electron microscope equipment. To ensure the homogeneity of the solution (base oil and additives), the formulations were subjected to the sonication process. The anti-friction and anti-wear properties of EVA and SDBS particles as lubricant additives were investigated using a ball on a flat high-frequency reciprocating rig tribo-tester.

According to the findings, the base oil’s anti-friction and anti-wear capabilities can be greatly enhanced by the additions. revealed that the best results were obtained when 1.2% EVA + 2% SDBS was applied for the examination of wear (597.8 µm) and friction coefficient (0.106). Commercial references were used, nevertheless, and the results were excellent. This is because the particles in the contact area during lubrication have strong solubility and quickly penetrate the contact zone. The lubricating mechanisms were explained by a tribological model of the EVA + SDBS and SDBS particles.

The coefficient of friction and wear reduction caused by the use of the additives will certainly enhance system performance and protect the machine components from excessive wear that could cause damage or failure.

The originality and uniqueness of this work are officially affirmed by the authors. The authors’ autonomous and original contribution to the development of sustainable lubrication is represented in this work. To the best of the authors’ knowledge, no other study has been published or made publicly available that duplicates the precise scope and goals of our research, and this conclusion is based on a thorough literature assessment.

This paper attempts to propose the uses of a capital budgeting tool, the Economic Value Added (EVA)for a university. Although there are reports of widespread use of the EVA in many for‐profit organisations, there is no evidence in literature that it has been adopted as a capital budgeting tool for a university. In this paper the application of the EVA for a university is proposed. It shows how the EVA can increase the awareness of the importance of asset utilisation in universities and guide universities to better resource management. EVA is proposed for use in a university setting in two different segments: for‐profit and non‐profit. The EVA has been adjusted with a new measure, Academic Value Added Ratio (AVAR) to reflect the university’s objective. The perception of academic staff in the case study university in Thailand with regards to the concept of applying the EVA to a university is further investigated. The results indicate that most members of management staff do not oppose this concept if it is implemented in a proper way.

The aim of this paper is to propose extended intellectual capital (IC) indicators. The study shows that the essence of IC in the context of value is residual income, its growth rate and growth rate of equity taken together. It allows creating IC measures (modified residual income and economic value added of equity) that contain these components. The study investigates the relationship between IC and market value for Russian public firms.

The authors propose modified residual income and modified economic value added of equity as IC metrics. This study tests a relationship between market value and IC to investigate suggested metrics. Static and dynamic panel data models are used. 25 companies from the MOEX Russia Index were included in the study. The study covers the period from 2014 to 2018.

The findings show a strong positive relationship between market value and IC. The results confirm that extended IC measures have a stronger connection to market value.

Firstly, these results benefit managers. They can use proposed extended IC measures as targets for the company when planning business strategy and generating business environment. Secondly, suggested IC measures can help shareholders and investors achieve their long-term goal – wealth maximization.

The value of this article is the development of IC theory and valuation. The proposed measures differ in the way that they consider the growth rates – the main determinants of value along with efficiency.

This study examines the influence of corporate real estate (CRE) on shareholder value using two value‐based measures: economic value added (EVA) and market value added (MVA). We find that CRE has impacted negatively on non‐real estate firms' EVA and MVA in the period 1997‐2001. This happens for the non‐real estate corporations from different industries. Further, the higher the real estate asset intensity, the greater the negative impact on the firms' EVA and MVA. Our results have important implications for the traditional notion that there is a competitive advantage in owning CRE by diversified conglomerates. Specifically, more studies are needed to explore and compare the main reasons and motivations as to why Asian non‐real estate firms are still more involved with real estate activities than their counterparts in Europe and USA even though ownership of CRE appears to destroy shareholders' wealth.

The purpose of this paper is to examine the relationships between human resource (HR) policies, management accounting and organisational performance in Canada, Japan and the UK.

A cross case analysis of the observations emerging from each of six case studies (two in Canada, two in Japan and two in the UK) result in a set of 13 findings.

The seven main HR policies emerging from this study are the “job for life” (in one British and two Japanese cases), recruitment, training, performance‐related bonus scheme, teamwork, organisational culture and pensions. Important communication links between HR managers and management accountants are budgets, strategic plans, performance‐related bonus scheme and decision making. The “job for life” policy, employee recruitment decisions, viewing employees as assets (rather than costs), training, performance‐related bonus scheme, teamwork, organisational culture and a good pension scheme all had an impact on organisational performance.

It is very difficult to link specific HR policies with changes in organisational performance because of the number of other variables affecting organisational performance and the time lags involved.

Several of the case studies are making real progress in establishing links between specific HR policies and changes in organisational performance by using benchmarking or employee opinion surveys or a combination of the results of both external benchmarking and employee opinion surveys over a number of years.

Academic integrity in tertiary education is a global concern. This chapter describes academic integrity in Australian universities and proposes an “it takes a village” framework to guide universities toward a re-evaluation of academic integrity education. It takes a village to raise a child – a child needs role models and positive influences from multiple people for healthy growth and development. With regard to academic integrity, the parallel is that the entire university community needs to be involved to foster development of students of integrity. The institution and its community need to provide structures, multiple positive and effective learning experiences, and clear guidelines to support both staff and students. In this chapter, we argue that academic integrity needs to be seen as a complex system, one in which everyone involved has responsibility to develop and maintain a culture of integrity and one which supports a student throughout their academic journey.

This study aims to examine the long-term effects of adopting economic value added (EVA) as a compensation tool on managers’ behaviour.

The authors extend the sample used in prior studies both in the time and the cross-section dimensions.

The study conclusions are distinct from those offered by existing studies. The authors show that EVA adopters, relative to non-EVA adopters, increase the working capital cycle, use their assets less intensively and decrease their payouts to shareholders via a decrease in dividends and share repurchases. In investing decisions, the authors find a decrease in new investments, but no change in asset dispositions after the adoption of EVA compensation plans.

The study results highlight that the EVA adoption provides more incentives to reduce the total cost for capital rather than increasing operations and maximising shareholder wealth. The results also have implication for corporate management, particularly in the area of management compensation scheme design.

The basis of this paper is a critical review of an article published in this journal, by Zafiris and Bayldon (JAAR, 5, 2, 2000), on Economic Value Added and Market Value Added. This review provides a detailed critique of the literature relating to EVA® and the underlying philosophy of the use of EVA® as a performance metric. Following this, there is a comment on the analysis provided by Zafiris and Bayldon and a review of the empirical evidence presented in support of their analysis. The paper demonstrates that the amendments to the EVA® model proposed by Zafiris and Bayldon are not original and are unlikely to result in a significant improvement to the usefulness of the original model.

The purpose of this paper is to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The authors investigate the impact of six bank-specific factors and corporate governance factors on financial performance.

The authors use the ordinary least square regression to examine the determinants of the EVA performance evaluation model for the Chinese banking industry. The findings are generally robust to alternative proxies of performance.

The empirical results indicate that credit risk, operational efficiency and the degree of innovation are positively related to banks’ EVA while capital management has a negative impact on it. In addition, although board size and independent directors are not related to the bank’s EVA, from the perspective of the traditional performance evaluation indicators, executive compensation has a positive impact on the bank’s profitability.

This paper has some limitations. First, due to the large number of adjustments to accounting items are required in the application of EVA when evaluating business performance, some items of the EVA model in this paper have been simplified, which may cause the bank’s EVA value to deviate slightly from the actual situation. Moreover, the sample includes only listed banks, so our results cannot generalize to non-listed banks, such as some small- and medium-sized commercial banks.

This paper contributes to the limited body of literature concerning the use and the determinants of EVA in emerging markets. The authors construct an EVA model which is suitable for China’s banks and reports comprehensive evidence on the drivers of EVA as a measurement tool.