ECONOMIC VALUE ADDED IN BUSINESS ECONOMICS

Economic Value Added (EVA) is based on the concept of economic profit. This indicator aims to motivate managers to focus on value growth for shareholders. Management should seek to maximize shareholder value in the form of dividends and share price growth. Main advantage of EVA is that it provides for management of larger enterprises more realistic information about performance and it also motivates them to make decisions leading to the growth of market value. Aim of this paper is to evaluate calculated values of EVA based on narrow value ranges of unnamed company which is involved in section D according to CZ-NACE division and to compare the results with values of section D - Electricity, gas, steam and air conditioning supply.