The Process of Creating Economic Value Added: Causes, Factors and Implications

Roxana Arabela Dumitrascu ()

Knowledge Horizons - Economics, 2014, vol. 6, issue 1, 30-33

Abstract: The economic value added is formed under the influence of two major factors: the difference between the economic profitability and the weighted average cost of capital, called the rate of economic value generation and the value of the economic asset exploited by the company. To stimulate the process of creation of economic value added, the company must act in the sense of increasing the rate of economic value generation and development of the volume of the economic asset.

Keywords: Economic rate of return; weighted average cost of capitals; economic asset; elasticity; intensive and extensive factors of development (search for similar items in EconPapers)
JEL-codes: B15 C46 D85 (search for similar items in EconPapers)
Date: 2014
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