Value Based Performance Measures

1. Front Matter

   Pages I-XXIV

   PDF

2. Introduction

   • Nils Eikelmann

   Pages 1-8

3. Framework Conditions for the Application of Value Based Performance Measures

   • Nils Eikelmann

   Pages 9-89

4. Critical Evaluation of Selected Value Concepts

   • Nils Eikelmann

   Pages 91-167

5. Application and Value Relevance of Value Based Performance Measures in Europe

   • Nils Eikelmann

   Pages 169-259

6. Conclusion

   • Nils Eikelmann

   Pages 261-269

7. Back Matter

   Pages 271-309

   PDF

Nils Eikelmann describes the framework conditions for the application of value-based performance measures and critically analyses selected ones. The disclosure of value-based performance indicators is important in order to demonstrate the successful management of a company and to satisfy the increasing information needs of investors. However, companies adapt the developed theoretical concepts of value-based performance measures to their practical needs and thus investors are no longer able to compare the performance of companies. In addition, there is a variety of different metrics from which companies can choose. The empirical study aims to reduce existing research gaps and is divided into three parts: the analysis of annual reports of selected European companies, the calculation of a standardised value-based performance measure and a value relevance study in the form of an association study.

• Value based performance measures
• Value relevance study
• Value reporting
• Value based management
• Analysis of annual reports
• Price level model
• Shareholder value
• Comparison of performance
• Preinreich-Lücke theorem
• ROCE Spread
• Value Added
• Economic Value Added (EVA)
• Cash Flow Return on Investment (CFROI)
• Capital Market Research
• Association Study

• ISF – Institute for Strategic Finance, FOM – University of Applied Science for Economics and Management, Essen, Germany

  Nils Eikelmann

Nils Eikelmann works in the accounting department of a German power supply company. He received his doctorate from the Universidad Católica de Murcia, Spain. As a part-time lecturer he teaches accounting at the FOM Hochschule für Oekonomie & Management Essen, Germany.

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