This article introduces a new financial metric for managerial performance evaluation, Value Added to Invested Capital (VAIC), with the cost of unlevered equity as a hurdle rate to calculate the capital charge rather than the widely accepted WACC. VAIC preserves all positive features of the...

We demonstrate analytically and illustrate with examples that the conventional measures of the residual operating income such as the Economic Value Added (EVA) are biased by design and so may yield a misleading assessment of financial performance. Fundamentally, the magnitude of the measurement...

We develop a method for defining groups of peer firms on the basis of joint analyst coverage. Besides industry boundaries, analysts' coverage choices reflect other aspects of firm relatedness such as business model. We find that the analyst-based method produces substantially more homogenous...

Financial indicators are the most used variables in measuring the business performance of companies, signaling about the financial position, comprehensive income, and other significant reporting aspects. In a competitive environment, the performance measurement model allows performing...

Efficiency generally translates to better financial performance and profitability and, thus, is often taken into account when analyzing activity of the banking sector. The sustainability approach adds social and environmental effects to the economic ones. Even though there have been studies on...

"Fully revised and updated, Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, Second Edition represents a significant shift in the way KPIs are developed and used, with an abundance of implementation tools."--BOOK JACKET