Assistant Professor & Head,
Economic Value Added is the financial performance measure that comes closer than any other to capture the true economic profit of an enterprise. EVA is the performance measure most directly linked to the creation of shareholder wealth over time. EVA-based financial management and incentive compensation system, gives managers superior information and superior motivation to make decisions, that will create the greatest shareholder wealth in any publicity owned or private enterprise. Stern Stewart & Co., is a Global consulting firm, which was established in 1982, developed EVA. Economic Value Added is currently a very popular idea. This has led to restructuring, lowering of cost of capital, efficiency improvement and dramatic increase in current market value. EVA is essentially the surplus left after making an appropriate change for the capital employed in the business. The analysis of Economic Value Added (EVA) of Hindustan Unilever Limited helps in maximizing the wealth of shareholders effectively.
