International Journal of Accounting, Finance and Risk Management

| Peer-Reviewed |

Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon

Received: Dec. 24, 2019    Accepted: Jan. 02, 2020    Published: Mar. 10, 2020
Views:       Downloads:

Share This Article

Abstract

Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.

DOI 10.11648/j.ijafrm.20200501.13
Published in International Journal of Accounting, Finance and Risk Management ( Volume 5, Issue 1, March 2020 )

This article belongs to the Special Issue Perspectives on Risk Management and Impact on Sustainability of Companies

Page(s) 26-39
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Value Creation, EVA®, Value-Based Management, Value Drivers

References
[1] Assaf Neto, A. (2014). Finanças corporativas e valor. (7ª Edição). São Paulo: Editora Atlas.
[2] Stewart, G. (1999). The quest for value: a guide for senior managers. Estados Unidos da América: HarperCollins publishers.
[3] Black, A., Wright P. & Davies, J. (2001). In search of shareholder value: Managing the drivers of performance (2ª Edição). Pearson Education.
[4] Rappaport, A. (2001). Gerando valor para o acionista: um guia para administradores e investidores. São Paulo: Editora Atlas.
[5] Damodaran, A. (2001). Corporate Finance: Theory and Practice. (2nd edition). New York: John Wiley & Sons.
[6] Ferreira, D. (2002a). Fusões, Aquisições e Reestruturações de Empresas – Vol. I. (1ª edição). Lisboa: Edições Sílabo.
[7] Copeland, T., Koller, T. & Murrin, J., (2000). Valuation: Measuring and managing the value of companies. (3 ª edição). Estados Unidos: John Wiley & Sons, Inc.
[8] Elgharbawy, A. & Abdel-Kader, M. (2013). Enterprise governance and value-based management: a theoretical contingency Framework. Journal of Management and Governance, 17, 99–129.
[9] Caselani, D. M. C. & Caselani, C. N. (2006). Direcionadores Financeiros e Não Financeiros: Impactos na Geração de Valor. 30ª Encontro ANPAD, Salvador Brasil. Retrieved from: http://www.anpad.org.br/enanpad/2006/dwn/enanpad2006-ficd-1949.pdf. Accessed 2016/11/20.
[10] Rodrigues, J. (2010). Avaliação do desempenho das organizações. Lisboa: Escolar Editora.
[11] Neves, J. (2011). Avaliação e Gestão da Performance Estratégica da Empresa. (2ª Edição). Lisboa: Texto Editores.
[12] Carvalho, I. (2008). Gestão Baseada no Valor. Revista TOC, 95, 50-59. Retrieved from: http://www.occ.pt/downloads/files/1202986089_50a59_gestao.pdf. Accessed 2016/11/20.
[13] Brealey, R., Myers, S. & Marcus, A. (2001). Fundamentals of Corporate Finance (3ª edição). Estados Unidos da América: The McGraw-Hill Publishing.
[14] Martin, J., Petty, J. & Wallace, J. (2009). Value-based management with corporate social responsibility. (2ª Edição). Nova York: Oxford University press.
[15] Young, S. & O’Byrne, S. (2003). EVA e Gestão Baseada em Valor: guia prático para implementação. Porto Alegre: Bookman.
[16] Dekker, H., Groot, T., Schoute, M. 6 Wiersma, E. (2012). Determinants of the use of value-based performance measures for managerial performance evaluation. Journal of Business Finance & Accounting, 39 (9) & (10), 1214–1239.
[17] Prusty, T. (2013). Corporate Governance through the EVA Tool: A Good Corporate Performance Driver. Journal of Asian Business Strategy, 3 (12), 340-348.
[18] Ferreira, D. (2002b). Fusões, Aquisições e Reestruturações de Empresas – Vol. II. (1ª edição). Lisboa: Edições Sílabo.
[19] Sharma, A. K. & Kumar, S. (2010). Economic Value Added (EVA) - Literature Review and Relevant Issues. International Journal of Economics and Finance, 2 (2), 200-220.
[20] Saurin, V., Mussi, C. & Cordioli, L. (2000). Estudo do desempenho econômico das empresas estatais privatizadas com base no MVA e no EVA. Caderno de Pesquisas em Administração, São Paulo, 1 (11), 18-26. Retrieved from: http://www.regeusp.com.br/arquivos/C11-art03.pdf. Accessed 2016/11/20.
[21] Yin, R. (2010). Estudo de Caso. Planejamento e Métodos. (2ª Edição). Porto Alegre: Bookman Editora.
[22] Euronext Lisbon. Accessed 2017/03/13. https://www.bolsadelisboa.com.pt/.
[23] Ganea, M. (2015). Determinant Factors of the Economic Value Added in the Case of Romanian Companies Listed on the Bucharest Stock Exchange. Audit financiar, XIII, 1 (121), 100-107.
[24] Gujarati, D. (1999). Essencials of Econometrics. (2ª Edição). United States of America, Boston: McGraw-Hill.
[25] Chaves, C., Maciel, E., Guimarães, P. & Ribeiro, J. (2000). Instrumentos estatísiticos de apoio à economia: conceitos básicos. Amadora: Editora McGraw-Hill.
[26] Pestana, M. & Gageiro, J. (2005). Descobrindo a regressão – Com a complementaridade do SPSS. (1ª Edição). Lisboa: Edições Sílabo.
[27] Hair Jr., J., Anderson, R., Tatham, R. & Black, W. (2005). Análise multivariada de dados. (5ª Edição). São Paulo: Bookman.
[28] Maroco, J. (2007). Análise Estatistica – com utilização do SPSS. (3ª Edição). Lisboa: Edições Sílabo.
[29] Pestana, M. & Gageiro, J. (1998). Análise de dados para ciências sociais – A complementaridade do SPSS. (1ª Edição). Lisboa: Edições Sílabo.
[30] Neves, J. (2012). Análise e Relato Financeiro - Uma visão integrada de gestão. (5ª Edição). Lisboa: Texto Editores.
[31] Carvalho, S. & Barajas, Á. (2012). Existe um único prémio de risco de mercado? Evidência em Portugal (1994-2011). XV Encontro AECA. Disponível em 29 de janeiro de 2017, em: http://abarajas.webs.uvigo.es/Prima%20Riesgo%20XV%20Encuentro%20AECA.pdf.
[32] On-line statistics Bank of Portugal. Accessed 2017/02/03. https://www.bportugal.pt/Mobile/BPStat/Serie.aspx?IndID=827051&SerID=2028131&sr=2028132%C2%AD2028133&View=data&SW=1263&Show=1&fOrder=RDE%E2%80%A6.
[33] Damodaran on-line. Accessed 2017/02/03. http://pages.stern.nyu.edu/~adamodar/.
[34] Price Waterhouse Coopers (pwc). Accessed 2017/05/15. https://www.pwc.pt/pt/pwcinforfisco/guia-fiscal/2017/irc.html.
[35] Hall, J. H. (2012). Drivers Creating Shareholder Value In South African Manufacturing Firms. The Journal of Applied Business Research, 28 (5), 1035-1048.
[36] Meneses, A., Cunha, L., De Luca, M. & Holanda, A. (2012). Criação ou destruição de valor na perspectiva do EVA® no ranking das maiores empresas da revista exame. Revista ciências da administração, 14 (34), 103-117.
[37] Boletim económico do Banco de Portugal de dezembro de 2016. Retrieved from: https://www.bportugal.pt/sites/default/files/anexos/pdf-boletim/be_dez2016_p.pdf. Accessed 2017/10/20.
[38] Silva, S., Ferreira, P. & Calegario, C. (2009). Estratégias financeiras empresariais para criação e destruição de valor. Revista Gestão.Org, 7, 348-362. Retrieved from: http://www.revista.ufpe.br/gestaoorg/index.php/gestao/article/viewFile/8/5. Accessed 2016/09/28.
[39] Corrêa, A., Neto, A., Nakao, S. & Osajima, A. (2012). A relevância da informação contábil na identificação de empresas criadoras de valor: um estudo do setor de energia elétrica brasileiro. Revista Contemporânea de Contabilidade, 9 (18), 137-166.
[40] Aguiar, A. B., Pimentel, R. C., Rezende, A. J. & Corrar, L. J. (2011). Análise dos direcionadores de valor em empresas brasileiras. RAM, Rev. Adm. Mackenzie, 12 (2), 90-112.
[41] Tiwari, R. & Kumar, B. (2015). Drivers of Firm’s Value: Panel Data Evidence from Indian Manufacturing Industry, Asian Journal of Finance & Accounting, 7 (2).
Cite This Article
  • APA Style

    Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. (2020). Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. International Journal of Accounting, Finance and Risk Management, 5(1), 26-39. https://doi.org/10.11648/j.ijafrm.20200501.13

    Copy | Download

    ACS Style

    Rosa Maria Morgado Galvão; Ana Bela de Sousa Delicado Teixeira; Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int. J. Account. Finance Risk Manag. 2020, 5(1), 26-39. doi: 10.11648/j.ijafrm.20200501.13

    Copy | Download

    AMA Style

    Rosa Maria Morgado Galvão, Ana Bela de Sousa Delicado Teixeira, Sandra Cristina Dias Nunes. Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon. Int J Account Finance Risk Manag. 2020;5(1):26-39. doi: 10.11648/j.ijafrm.20200501.13

    Copy | Download

  • @article{10.11648/j.ijafrm.20200501.13,
      author = {Rosa Maria Morgado Galvão and Ana Bela de Sousa Delicado Teixeira and Sandra Cristina Dias Nunes},
      title = {Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {5},
      number = {1},
      pages = {26-39},
      doi = {10.11648/j.ijafrm.20200501.13},
      url = {https://doi.org/10.11648/j.ijafrm.20200501.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijafrm.20200501.13},
      abstract = {Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.},
     year = {2020}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Value Creation: EVA® Value Drivers - The Case of Euronext Lisbon
    AU  - Rosa Maria Morgado Galvão
    AU  - Ana Bela de Sousa Delicado Teixeira
    AU  - Sandra Cristina Dias Nunes
    Y1  - 2020/03/10
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijafrm.20200501.13
    DO  - 10.11648/j.ijafrm.20200501.13
    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
    SP  - 26
    EP  - 39
    PB  - Science Publishing Group
    SN  - 2578-9376
    UR  - https://doi.org/10.11648/j.ijafrm.20200501.13
    AB  - Value-based management has gained prominence in both business and academia, supported by the notion that It is no longer sufficient for a company to generate profit, it is also required that the profit be higher than the cost of the total capital invested in the company. To increase value creation, managers need to understand which are its relevant determinants (value drivers). Therefore, this study aims to identify the main value creation drivers measured by EVA® (economic value added), one of the value-based performance measures more referenced in financial literature. A sample of non-financial listed companies on Euronext Lisbon, from 2011 till 2016, is analyzed. The data was collected from the companies’ annual consolidated financial reports. The data was analyzed using tree statistical analysis techniques, binary logistic regression, Pearson correlation coefficient, and t-test for independent groups, with SPSS (Statistical package for social sciences). The results show that the variables more relevant to value creation are the operating profit margin ratio, invested capital turnover, and the cost of equity rate. This study provides valuable information that assists managers in their decision-making, allowing to maximize value creation, through the identification of the main value drivers, and it also contributes to the dissemination on the subject of value creation.
    VL  - 5
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • School of Business Administration, Polytechnic Institute of Setúbal, Setúbal, Portugal

  • School of Business Administration, Polytechnic Institute of Setúbal, Setúbal, Portugal

  • Section