Concluding Remarks: Strengths and Weaknesses of the Economic Value Measures

Daniela Venanzi

Chapter Chapter 4 in Financial Performance Measures and Value Creation: the State of the Art, 2012, pp 61-70 from Springer

Abstract: Abstract In this chapter some concluding remarks are given in order to summarize the main similarities and differences among the economic value measures analyzed in the previous chapters. Their strengths and weaknesses are discussed from the following standpoints: pitfalls in calculation, (in)consistency with value creation, pointing out the potential games which each metric can induce in managerial behaviors, and adequacy for managerial compensation in terms of clearness and verifiability.

Keywords: Calculation shortcomings of the economic value measures; Old plant trap; Capital game; Risk game; Hurdle rate problem; Short termism (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-88-470-2451-9_4

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DOI: 10.1007/978-88-470-2451-9_4

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