Title: Adoption of EVA by Taiwanese financial service organisations

Authors: Alasdair Marshall; Maxwell Chipulu; Udechukwu Ojiako; Chang Fang Ju

Addresses: School of Management, University of Southampton, Southampton SO17 1BJ, UK. ' School of Management, University of Southampton, Southampton SO17 1BJ, UK. ' Faculty of Engineering and the Built Environment, University of the Witwatersrand, 1 Jan Smuts Avenue, Johannesburg, South Africa. ' School of Management, University of Southampton, Southampton SO17 1BJ, UK

Abstract: The purpose of the present study is to explore the personal and contextual factors that affect the level of willingness to adopt EVA within financial service organisations (non-life insurance) in Taiwan. Data were collected from a stratified sample of managers and top executives of the 15 domestic (i.e., locally-controlled) financial service organisations in Taiwan. We employ Ordinal Logistic Regression Models to analyse the data. Results of the data analysis identified five conditions that determine the adoption of EVA among Taiwanese financial service organisations. We also found that the typical Taiwanese financial service organisations manager's willingness to adopt EVA is contingent upon the ability of EVA to balance conflicting objectives.

Keywords: economic value added; EVA; performance measurement; risk management; Taiwan; financial services; non-life insurance; modelling; willingness to adopt.

DOI: 10.1504/IJBE.2012.046216

International Journal of Business Environment, 2012 Vol.5 No.2, pp.193 - 209

Received: 05 Dec 2011
Accepted: 11 Jan 2012
Published online: 28 Aug 2014 *

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