Title: Divisional performance measures: EVAR as a proxy for shareholder wealth

Authors: Clare Minchington, Graham Francis

Addresses: Performance Management Research Unit, Open University Business School, Walton Hall, Milton Keynes, MK7 6AA, UK. Performance Management Research Unit, Open University Business School, Walton Hall, Milton Keynes, MK7 6AA, UK

Abstract: This paper examines the changing forms of divisional performance measures used by UK companies presenting empirical evidence from a postal questionnaire. In particular it considers the extent and nature of the use of value based measures, such as Economic Value Added (EVAR), at the divisional level and the manner in which these new metrics are being applied. It examines the consistency between measures used centrally and at the divisional level. It also considers the reasons behind the implementation of new measures and the level of awareness of these new metrics amongst qualified management accountants.

Keywords: Economic Value Added; shareholder value; divisional performance measures.

DOI: 10.1504/IJBPM.2000.000075

International Journal of Business Performance Management, 2000 Vol.2 No.1/2/3, pp.98-108

Published online: 13 Jul 2003 *

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