Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland

Authors

  • Edward Urbanczyk University of Szczecin, Poland
  • Edyta Midoduchowska-Jaroszewicz University of Szczecin, Poland
  • Agnieszka Dzczesna-Urbaniak University of Szczecin, Poland

DOI:

https://doi.org/10.32890/ijbf2005.3.8

Keywords:

Cash value added, transitional economies, economic value added, solvency

Abstract

This paper examines the application of the increasingly popular economic value added (EVA) and cash value added (CVA) measures of financial performance of private and publicly-traded firms. EVA and CVA are measured for a sample of Polish firms. Since traditional accounting measures are not robust indicators of corporate performance of firms in transitional economies, these alternate measures provide better assessment of value/cash flow creation and solvency. The results suggest that Polish firms, though reportedly making accounting profits, are indeed unable to generate value to shareholders. Further, the cash flow measures indicate a great deal of solvency risk. Thus, we recommend the use of these EVA and CVA measures for evaluating performance of companies, especially, in transitional economies.

 

References

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Published

03-01-2006

Issue

Vol. 3 (2005): Special Issue Vol. 3, 2005

Section

Articles

How to Cite

Urbanczyk, E., Midoduchowska-Jaroszewicz, E., & Dzczesna-Urbaniak, A. (2006). Economic Value Added Versus Cash Value Added: The Case of Companies in Transitional Economy, Poland. International Journal of Banking and Finance, 3, 107-117. https://doi.org/10.32890/ijbf2005.3.8

Research impact

Harvested 2026-09-07
5 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2005.3.8 OpenAlex W1607956605