Economic Value Added (How to Create Wealth for Shareholders)

Author: AI·Eber
Publisher:
Publish Date: 2005-03-01
Features: "For company directors who only look at the 'fat per share' (or other easily manipulated accounting targets that are popular in large quantities), if they still believe they have made a 'great effort' for the shareholders' interests, this book is a must-read." This book skillfully integrates theory and practice, thoroughly and persuasively arguing how VAV can change employee behavior patterns. "What businesses should engage in is economic behavior, not financial behavior—a profound yet clear insight that is a significant achievement in modern business thinking. This idea has far-reaching implications, providing everyone within the company with a set of tools to make better decisions, thereby creating greater value for shareholders." The "EVA" analysis method is key to understanding how companies create shareholder wealth. Crucially, it helps investors understand and measure the factors that create or destroy value. "EVA is a 'invisible hand' that guides managers and employees to create wealth for themselves in management, while benefiting the company owners as well." AI·Eber clearly tells us what drives stock prices in the long run, which helps both investors and corporate managers. The cases in this book also illustrate what kind of results can be achieved by focusing on the basic principles of EVA. The EVA (Economic Value Added) discussed in this book is called by Fortune magazine the "hottest financial concept today, and it will only get hotter." EVA has been adopted by companies like Coca-Cola, Eli Lilly, and Siemens, resulting in extraordinary financial performance. So what is the magic of EVA? The renowned American economic writer, also the creator of EVA, AL·Eber, explains it in detail in this book. He also specifically points out that EVA is not only a corporate performance indicator but also a framework for comprehensive financial management and compensation incentives, guiding companies to make all decisions that improve the work and lives of everyone within the organization, and helping them create more wealth for shareholders, customers, and themselves.