Detail publikace

Measuring a Company s Performance: The Identification of Correlation between EVA and Selected Financial Measuring a Companys Performance: The Identification of Correlation between EVA and Selected Financial Indicators with Use of Genetic Algorithm

DOSTÁL, P. PAVELKOVÁ, D.

Originální název

Measuring a Company s Performance: The Identification of Correlation between EVA and Selected Financial Measuring a Companys Performance: The Identification of Correlation between EVA and Selected Financial Indicators with Use of Genetic Algorithm

Typ

článek v časopise - ostatní, Jost

Jazyk

angličtina

Originální abstrakt

This paper deals with topic of measuring company s performance using different concepts, tools and indicators. It defines the requirements on a concept or an indicator, which it should meet in order to reflect the real performance of a company. The authors describe and compare value-based concepts and the traditional financial analysis indicators. They demonstrate their interest in particular concepts on basis of a survey on an extensive sample of companies in the Czech Republic, and the authors conclude that the use of traditional financial indicators hugely prevails, despite the value based indicators demonstrate much stronger connection to the market value of a company. On the grounds of a research into contemporary literature on the subject as well as on basis of authors own experience, they point out the Economic Value Added (EVA) to the application of selected value-based concepts and measures as a measure for company performance evaluation, which meets the required parameters. It can be used very effectively for identification of strengths and weakness of company performance at various levels of management. The EVA indicator may also be interconnected with the financial analysis indicators with use of pyramidal breakdown of EVA. At the same time, the problems of calculation of EVA which is often restrained due to a lack of input information, is stressed. The authors inquire into a question whether a relationship between the value of EVA and the selected indicators of traditional financial analysis may be found using genetic algorithms for clustering into different groups of performance. They show that, to a certain degree of probability, this relationship may be proved with selected parameters. This method may be therefore also used for categorization of company s performance without the need to adjust accountings data for the EVA calculation

Klíčová slova

Company performance, value-based management, indicators, financial analysis, EVA, pyramidal breakdown, genetic algorithm

Autoři

DOSTÁL, P.; PAVELKOVÁ, D.

Rok RIV

2013

Vydáno

26. 9. 2013

Nakladatel

Wseas

Místo

USA

ISSN

1109-9526

Periodikum

WSEAS Transactions on Business and Economics

Ročník

10

Číslo

3

Stát

Rakouská republika

Strany od

285

Strany do

293

Strany počet

9

BibTex

@article{BUT101647,
  author="Petr {Dostál} and Drahomíra {Pavelková}",
  title="Measuring a Company s Performance: The Identification of Correlation between EVA and Selected Financial Measuring a Companys Performance: The Identification of Correlation between EVA and Selected Financial Indicators with Use of Genetic Algorithm",
  journal="WSEAS Transactions on Business and Economics",
  year="2013",
  volume="10",
  number="3",
  pages="285--293",
  issn="1109-9526"
}