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stock performance (i.e., poor profitability) and whether adopting EVA leads to better stock performance (i.e., greater … profitability). There is insufficient evidence to conclude that poor stock performance leads firms to adopt EVA or that adopting EVA … improves stock performance. Firms that adopt EVA appear to have above average profitability relative to their peers both before …
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This paper reviews the financial performance, risk, changing revenue and asset mix and prospects for future shareholder value creation of the 20 largest commercial banks in the US from 2003-2012. Fifteen of the 20 banks in the sample reported record revenues in 2012, with 12 of these banks also...
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This paper includes the following topics:1. The Return On Equity (ROE): What is ROE? How do we know if the ROE of a company is good or not? What should be the relationship between ROE and cost of equity(Ke)? What are the ROEs of the different industries?2. The Return On Capital Employed (ROCE):...
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The Economic Value-Added (EVA) considers the cost of equity investments and pays more attention to the long-term development of the company through a number of adjustments in net profit. EVA emphasizes the economic benefits, while the net profit emphasizes it in an accounting sense. When the...
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Corporate profitability is a core issue of financial statement analysis and corporate finance. Economic profitability …
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The ultimate purpose of business activity of making money (Goldrat) is disposed to the customer, in exchange of the value served to him, which is essentially tangible. It requires that the organization sustainably invests resources and initiatives to delight the customer. The objectives are...
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