Serviços Personalizados
Artigo
Indicadores
Links relacionados
- Citado por Google
- Similares em Google
Compartilhar
South African Journal of Economic and Management Sciences
versão On-line ISSN 2222-3436
versão impressa ISSN 1015-8812
S. Afr. j. econ. manag. sci. vol.12 no.2 Pretoria Jul. 2009
ARTICLES
IAS15 inflation adjustments and EVA: Empirical evidence from a highly variable inflation
Pierre Erasmus
Department of Business Management, University of Stellenbosch
ABSTRACT
Inflation can have a pronounced effect on the financial performance of a firm. This study makes inflation adjustments to a firm's cost of sales, depreciation, level of gearing and assets in line with International Accounting Standard 15 (IAS15) in order to calculate an inflation-adjusted version of the economic value added (EVA) measure. The study was conducted using data from South African industrial firms during a period characterised by highly variable inflation levels (1991-2005). The results indicate that during this period there were significant differences between the nominal and real values of the firms' EVAs.
Keywords: financial performance under inflation, IAS15 inflation adjustments, nominal EVA values, real EVA values, South African industrial firms' EVAs
JEL E31; 32
“Full text available only in PDF format”
References
BACIDORE, J.M., BOQUIST, J.A., MILBOURN, TT & THAKOR, A.V, 1997. The search for the best performance measure, Financial Analysts Journal, 53(3):11-20. [ Links ]
BLACK, A., WRIGHT, P. & DAVIES, J., 2001. In search of shareholder value: managing the drivers (2nd ed). Harlow: Financial Times Prentice Hall. [ Links ]
BUREAU FOR ECONOMIC RESEARCH, 2005. Trends, University of Stellenbosch: Stellenbosch. [ Links ]
DE VILLIERS, J.U., 1997. The distortions in Economic Value Added (EVA) caused by inflation. Journal of Economics and Business, 49(3):285-300. [ Links ]
ERASMUS, P.D. & LAMBRECHTS, I.J., 2006. EVA and CFROI: A comparative analysis. Management Dynamics, 15(1): 14-26. [ Links ]
FABOZZI, F.J. & GRANT, J.L. (Ed), 2000. Value-based metrics: foundations and practice, New Hope: Frank J. Fabozzi Associates. [ Links ]
GRANT, J.L., 1996. Foundations of EVA™ for investment managers, Journal of Portfolio Management, 23(1):41-48. [ Links ]
GRANT, J.L., 2003. Foundations of Economic Value Added (2nd ed). Hoboken, N.J.: Wiley. [ Links ]
LEHN, K.L. & MAKHIJA, A.K., 1996. EVA and MVA as performance measures and signals for strategic change, Strategy and Leadership, 24(3):34-40. [ Links ]
MCGREGOR B.F.A. (PTY) LTD, 2005. McGregor B.F.A., Version 04.211. [ Links ]
O'BYRNE, S.F., 1996. EVA® and market value, Journal of Applied Corporate Finance, 9(1):116-125. [ Links ]
O'BYRNE, S.F., 1997. EVA and shareholder return, Financial Practice and Education, 7(1):50-54. [ Links ]
STEWART, G.B., 1991. The Quest for value: The EVATM management guide, New York: Harper Business. [ Links ]
STEWART, G.B., 1994. EVA™: Fact and fantasy, Journal of Applied Corporate Finance, 7(2):71-84. [ Links ]
WALBERT, L., 1994. The Stern Stewart performance 1000: Using EVA™ to build market value, Journal of Applied Corporate Finance, 6(4):109-120. [ Links ]
WARR, R.S., 2005. An empirical study of inflation distortions to EVA, Journal of Economics and Business, 57(2):119-137. [ Links ]
WORTHINGTON, A.C. & WEST, T., 2004. Australian evidence considering the information content of Economic Value Added, Australian Journal of Management, 29(2):201-223. [ Links ]
YOUNG, S.D. & O'BYRNE, S.F., 2001. EVA and value-based management: a practical guide to implementation, New York: McGraw-Hill. [ Links ]