Perspectives of Innovations, Economics and Business

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Volume 6
Issue 3
Online publication date 2010-10-07
Title Economic value added as a modern performance indicator
Author Maja Ilic
Abstract The qualitative information support presents a step further in the business process. Many traditional indicators of performance that have been used by the companies could not provide such support. Economic value added as an innovative approach to the measurement of business performance gives us a more realistic overview about the current state of the company. Taking into account the cost of equity and the possibility of execution of numerous accounting modifications represent significant innovations regarding to other concepts. The aim of this paper is to show practical examples of the extent to which traditional assessment of the company success may differ from the business overviewed from the perspective of economic value added. 
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Keywords Innovative concept measuring business performance, economic value added, accounting modifications, cost of equity.
Pages 94-97
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