VBM/EVA References

Question 1

O’Hanlon and Peasnell (1998)

Answer 1

suggest very little difference between EVA and residual income

Question 2

Firk et al. (2016) propose that success of VBM

Answer 2

is dependent on several contingencies, notably firm owners (shareholders) and managers

Question 3

Firk et al. (2016) found managers

Answer 3

will implement value creating strategies if interests are positively aligned with shareholders

Question 4

Firk et al. (2016) also found

Answer 4

an externally supportive environment (legislation that prioritises shareholder wealth maximisation) will also support VBM implementation

Question 5

Malmi and ikaheimo (2003)

Answer 5

consider VBM to be a 6 step process

Question 6

VBM/EVA in both Malmi and ikaheimo (2003) and Firk et al (2016) papers

Answer 6

depend on external environment which shows similarity to SMA