Economic Value Added (Eva)

Concluding Remarks

5.1 Conclusions

We conduct a study embedded many companies via the value matrix set up. By the research we have been given a deeper understanding of the “corporation value evaluation”, under the study where the context and logic further to use models for explaining the measurement and their business style.

The research has tried to set up a business evaluation model using the concept of residual value for companies and opportunity costs for investment.

This research also has given suggestions for corporation finance, organization, strategy and management, joint-venture analysis, merger & acquisitions, debt restructuring via the result of this matrix.

At first phase, the explorative approach went through the literature to demonstrate the shareholder value related issues, e.g. EPS showing how much of the company's profits, after tax, each shareholder owns. Then total returns of shareholder (TRS) provide a clear method for understanding shareholder value accretion period-on-period as well as the expectations for future growth, economic value added (EVA) recognizes value has to be measured after the firm has returned the amount invested and the return due to the actors－creditors and shareholders－that contributed to the amount invested, then market value added (MVA) present value of a company is expected to generate in future.

At second phase, a descriptive approach will also be utilized to get rudimental material that frame a general view on the existing idea of concerning shareholder value and the existing methods of evaluating shareholder value creation for this issue in this regard.

At third phase, research has included a critical part that the explanation for why measuring the shareholder value and how it will be. Therefore, quantitative analyses by reaching key financial indicators such as EPS, TRS, EVA and MVA have been employed to implement further set-up and data analysis.

The final phase is the data analyses and...