Management And Accounting Web

Economic Value Added and
Residual Income Bibliography

Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

EVA and Residual Income Main Page | Performance Measures Main Page | ROI Main Page

Ali, A., L. Hwang and M. A. Trombley. 2003. Residual-income-based valuation predicts future stock returns: Evidence on mispricing vs. risk explanations. The Accounting Review (April): 377-396. (JSTOR link).

Allman, K. A. 2010. Corporate Valuation Modeling: A Step-by-Step Guide. Wiley.

Amey, L. L. 1975. Tomkins on residual Income. Journal of Business Finance & Accounting (2): 55-68.

Anctil, R. M. 1996. Capital budgeting using residual income maximization. Review of Accounting Studies 1(1): 9-34.

Anctil, R. M., J. S. Jordan and A. Mukherji. 1998. Activity-based costing for economic value added®. Review of Accounting Studies 2(3): 231-264.

Anctil, R. M., J. S. Jordan and A. Mukherji. 1998. The asymptotic optimality of residual income maximization. Review of Accounting Studies 2(3): 207-229.

Arzac, E. R. 1986. Do your business units create shareholder value? Harvard Business Review (January-February): 121-126.

Bacidore, J. M., J. A. Boquist, T. T. Milbourn and A. V. Thakor. 1997. The search for the best financial performance measure. Financial Analysts Journal (May/June): 11-20. (Summary).

Balachandran, S. and P. Mohanram. 2012. Using residual income to refine the relationship between earnings growth and stock returns. Review of Accounting Studies 17(1): 134-165.

Balachandran, S. V. 2006. How does residual income affect investment? The role of prior performance measures. Management Science (March): 383-394. (JSTOR link).

Beaver, W. H. 1999. Comments on ‘An empirical assessment of the residual income valuation model'. Journal of Accounting and Economics (January): 35-42.

Biddle, G. C., R. M. Bowen and J. S. Wallace. 1997. Does EVA® beat earnings? Evidence on associations with stock returns and firm values. Journal of Accounting and Economics (31 December): 301-336.

Birchard, B. 1994. Mastering the new metrics. CFO: The Magazine for Chief Financial Officers 10(10): 30-38.

Bloxham, E. 2002. Economic Value Management: Applications and Techniques. Wiley.

Bowen, R. M. and J. S. Wallace. 1999. Interior Systems, Inc.: The decision to adopt EVA®. Issues In Accounting Education (August): 517-541.

Brief, R. P. 2007. Accounting valuation models: A short primer. Abacus 43(4): 429-437. (Discussion of the residual income valuation (RIV) and abnormal earnings growth (AEG) models).

Bromwich, M. and M. Walker. 1998. Residual income past and future. Management Accounting Research (December): 391-419.

Chan, K. H., S. F. Lam and R. Tang. 1979. Probabilistic approaches to return on investment and residual income: A comment. The Accounting Review (July): 643-649. (JSTOR link).

Chen, S. and J. L. Dodd. 1997. Economic value added (EVA®): An empirical examination of a new corporate performance measurement. Journal of Managerial Issues 9(3): 319-333.

Cheng, Q. 2005. What determines residual income? The Accounting Review (January): 85-112. (JSTOR Link).

Christensen, P. O., G. A. Feltham and M. G. H. Wu. 2002. "Cost of capital" in residual income for performance evaluation". The Accounting Review (January): 1-23. (JSTOR link).

Clancy, D. K. and D. W. Johnson. 1999. Stockholder value, adaptation and asset management: A study of the US electronics industry. Advances in Management Accounting (7): 203-216.

Clinton, B. D. and S. Chen. 1998. Do new performance measures measure up? Management Accounting (October): 38, 40-43. (Summary).

Dechow, P. M., A. P. Hutton and R. G. Sloan. 1999. An empirical assessment of the residual income valuation model. Journal of Accounting and Economics (January): 1-34.

Dierks, P. A. and A. Patel. 1997. What is EVA, and how can it help your company? Management Accounting (November): 52-58. (Summary).

Director's Alert. 1998. Merrill Lynch attacks Economic Value Added®. (March).

Dodd, J. and S. Chen. 1996. EVA: A new panacea? EVA is neither the only performance measure to tie to stock returns nor a vary complete one. Business & Economic Review (July-August): 26-28.

Easton, P. 2001. Discussion of: “When capital follows profitability: Non-linear residual income dynamics”. Review of Accounting Studies 6(2-3): 267-274.

Economist. 1996. A star to sail by? (August 2): 53-55.

Egginton, D. 1995. Divisional performance measurement: Residual income and the asset base. Management Accounting Research (September): 201-222.

Emblemsvåg, J. 2004. Activity-based costing and economic profit: Why, what, and how. Cost Management (July/August): 38-46.

Epstein, M. J. and S. D. Young. 1999. Greening with EVA. Management Accounting (January): 45-49. (Summary).

Esposito, E. F. 2013. The cost of capital for middle-market companies: Using middle-market finance theory and Pepperdine Private Capital Markets Project. The CPA Journal (March): 53-56.

Ezzamel, M. A. 1980. Estimating the cost of capital for a division of a firm and the allocation problem in accounting: A comment. Journal of Business Finance & Accounting 7(1): 65-73.

Fera, N. 1997. Using shareholder value to evaluate strategic choices. Management Accounting (November): 47-51. (Summary).

Ferrara, W. L. 1977. Probabilistic approaches to return on investment and residual income. The Accounting Review (July): 597-604. (JSTOR link).

Ferrara, W. L. 1979. Fantasyland accounting research: Let's pretend... A comment. The Accounting Review (January): 197-198. (JSTOR link).

Ferrara, W. L. 1979. Probabilistic approaches to return on investment and residual income: A reply. The Accounting Review (July): 650-651. (JSTOR link).

Fuller, R. J. and H. S. Kerr. 1981. Estimating the divisional cost of capital: An analysis of the pure-play technique. The Journal of Finance (December): 997-1009.

Garvey, G. T. and T. T. Milbourn. 2000. EVA versus earnings: Does it matter which is more highly correlated with stock returns? Journal of Accounting Research (Studies on Accounting Information and the Economics of the Firm): 209-245. (JSTOR link).

Gebhardt, W. R., C. M. C. Lee and B. Swaminathan. 2001. Toward an implied cost of capital. Journal of Accounting Research (June): 135-176. (JSTOR link).

Grant, J. L. 2002. Foundations of Economic Value Added, 2nd Edition. Wiley.

Halsey, R. F. 2001. Using the residual-income stock price valuation model to teach and learn ratio analysis. Issues In Accounting Education (May): 257-272.

Heinrichs, N., D. Hess, C. Homburg, M. Lorenz and S. Sievers. 2013. Extended dividend, cash flow, and residual income valuation models: Accounting for deviations from ideal conditions. Contemporary Accounting Research 30(1): 42-79.

Hill, A. 1982. Facts and theory in measuring divisional performance. Accountancy (April): 135-137.

Hilmola, O. and M. Gupta. 2016. EVA-based performance evaluation of initial public offerings: Analysis and some TOC-based insights. Cost Management (November/December): 15-32.

Hubbell, W. W. Jr. 1996. Combining economic value added and activity-based management. Journal of Cost Management (Spring): 18-29.

Hubbell, W. W. Jr. 1996. A case study in economic value added and activity-based management. Journal of Cost Management (Summer): 21-29.

Hwang, L. and W. Lee. 2013. Stock return predictability of residual-income-based valuation: Risk or mispricing. Abacus 49(2): 219-241.

Institute of Management Accountants. 1997. 1997 student case competition: Using EVA at Outsource, Inc. Management Accounting (January): 56, 58-59.

Ittner, C. D. and D. F. Larcker. 1998. Innovations in performance measurement: Trends and research implications. Journal of Management Accounting Research (10): 205-238. (Summary).

Jalbert, T. and S. P. Landry. 2003. Which performance measurement is best for your company? Management Accounting Quarterly (Spring): 32-41. (Discussion of EVA, tracking stock and balanced scorecard). (Summary).

Jensen, R. E. 1979. Fantasyland accounting research: Let's pretend.... The Accounting Review (January): 189-196. (JSTOR link).

Johnson, N. B. 2010. Residual income compensation plans and deferred taxes. Journal of Management Accounting Research (22): 103-114.

Kee, R. C. 1999. Using economic value added with ABC to enhance production-related decision making. Journal of Cost Management (December): 3-15. (Summary).

Keef, S. P. and M. L. Roush. 2002. The measurement of shareholder wealth creation: A transatlantic comparison. Management Accounting Quarterly (Winter): 1-5. (According to Keef and Roush, abnormal return (AR) is superior to market value added (MVA) and total shareholder return (TSR) as a measure of shareholder wealth creation).

Lai, C. 2015. Growth in residual income, short and long term, in the OJ model. Review of Accounting Studies 20(4): 1287-1296.

Laing, G. and K. Dunbar. 2015. EVA™, EPS, ROA and ROE as measures of performance in Australian banks: A longitudinal study. Journal of Applied Management Accounting Research (Winter): 41-48.

Lee, C. M. C. 1999. Commentaries based on the 1999 Doctoral Consortium: Accounting-based valuation: Impact on business practices and research. Accounting Horizons (December): 413-425. (A focus on the discounted residual income model).

Lehn, K. and A. K. Makhija. 1997. EVA®, accounting profits, and CEO turnover: An empirical examination, 1985-1994. Journal of Applied Corporate Finance (Summer): 90-97.

Lovata, L. M. and M. L. Costigan. 2002. Empirical analysis of adopters of economic value added. Management Accounting Research (June): 215-228.

Malmi, T. and S. Ikaheimo. 2003. Value based management practices - Some evidence from the field. Management Accounting Research (September): 235-254.

Martin, J. R. Not dated. Chapter 14: Investment Centers, Return on Investment, Residual Income and Transfer Pricing. Management Accounting: Concepts, Techniques & Controversial Issues. Management And Accounting Web. http://maaw.info/Chapter14.htm

Melnyk, Z. L. 1970. Cost of capital as a function of financial leverage. Decision Sciences 1(3-4): 327-356.

Milunovich, S. and A. Tsuei. 1996. EVA® in the computer industry. Journal of Applied Corporate Finance (Spring): 104-115.

Moore, S. F. 1998. Aligning environmental decision making with business strategy: Georgia-Pacific's economic value added approach. Strategic Environmental Management (1): 69-76.

Mouritsen, J. 1998. Driving growth: Economic value added versus intellectual capital. Management Accounting Research (December): 461-482.

Myers, J. N. 1999. Implementing residual income valuation with linear information dynamics. The Accounting Review (January): 1-28. (JSTOR link).

O'Byrne, S. F. 1996. EVA® and market value. Journal of Applied Corporate Finance (Spring): 116-125.

O'Hanlon, J. and K. Peasnell. 1998. Wall Street's contribution to management accounting: The Stern Stewart EVA® financial management system. Management Accounting Research (December): 421-444.

O'Hanlon, J. and K. Peasnell. 2002. Residual income and value-creation: The missing Link. Review of Accounting Studies 7(2-3): 229-245.

O’Hanlon, J. and K. Peasnell. 2004. Residual income valuation: Are inflation adjustments necessary? Review of Accounting Studies 9(4): 375-398.

Ohlson, J. A. 2002. Discussion of “Residual income and value-creation: The missing link”. Review of Accounting Studies 7(2-3): 247-251.

Rajan, M. V. 2000. Discussion of EVA versus earnings: Does it matter which is more highly correlated with stock returns? Journal of Accounting Research (Studies on Accounting Information and the Economics of the Firm): 247-254. (JSTOR link).

Ratnatunga, J. and L. Montali. 2008. Performance management measures that enhance organisational value: A review. Journal of Applied Management Accounting Research (Summer): 1-16.

Schueler, A. and S. Krotter. 2008. The link between residual income and value created for levered firms: A note. Management Accounting Research (September): 270-277.

Shwayder, K. 1967. A critique of economic income as an accounting concept. Abacus 3(1): 23-25.

Shwayder, K. 1970. A proposed modification to residual income - Interest adjusted income. The Accounting Review (April): 299-307. (JSTOR link).

Skogsvik, S. and K. Skogsvik. 2010. Accounting-based probabilistic prediction of ROE, the residual income valuation model and assessment of mispricing in the Swedish stock market. Abacus 46(4): 387-418.

Snyder, A. V. 1995. Value-Based Management: Highlighting the Resource Allocation Challenge. Boston, MA: Braxton Associates.

Solomons, D. 1968. Divisional Performance: Measurement and Control. Homewood, Ill.: Richard D. Irwin Inc.

Stark, A. W. 1986. More on the discounting of residual income streams. Abacus 22(1): 20-28.

Stark, A. W. and H. M. Thomas. 1998. On the empirical relationship between market value and residual income in the U.K. Management Accounting Research (December): 445-460.

Staubus, G. J. 1952. Payments for the use of capital and the matching process. The Accounting Review (January): 104-113. (JSTOR link).

Stern, J. M. and D. H. Chew Jr. 2003. The Revolution in Corporate Finance. Blackwell Publishing.

Stern, J. M., J. S. Shiely and I. Ross. 2001. The EVA Challenge: Implementing Value Added Change in an Organization. John Wiley & Sons.

Stern, J. M., G. B. Stewart III and D. H. Chew, Jr. 1995. The EVA® financial management system. Journal of Applied Corporate Finance (Summer): 32-46.

Stewart, G. B. III. 1991. The Quest for Value: The EVA Management Guide. Harper Business.

Stewart, G. B. 1994. EVA™: Fact and fantasy. Journal of Applied Corporate Finance (Summer): 71-84.

Stewart, G. B. 1995. EVA® works - But not if you make these common mistakes. Fortune (May): 117-118.

Thomas, R. and B. E. Gup. 2009. The Valuation Handbook: valuation Techniques from Today's Top Practitioners. Wiley.

Tomkins, C. 1975. Another look at residual income. Journal of Business Finance and Accounting (Spring): 39-53, 906.

Tomkins, C. 1976. Residual income -- A rebuttal of professor Amey's arguments. Journal of Business Finance & Accounting (2): 161-168.

Tully, S. 1993. The real key to creating wealth: Rewarded by knockout results, managers and investors are peering into the heart of what makes businesses valuable by using a tool called economic value added. Fortune (September): 38-50.

Vickrey, D. W. 1995. Implications of economic income for earnings usefulness judgments. Abacus 31(2): 121-135.

Wallace, J. S. 1997. Adopting residual income-based compensation plans: Do you get what you pay for? Journal of Accounting and Economics (31 December): 275-300.

Wallace, J. S. 1998. EVA® Financial systems: Management perspectives. Advances in Management Accounting (6): 1-15. (Summary).

Weiner, I. J. 1981. A simplified approach to allocating and measuring use of capital. Retail Control (August): 12-18.

Weissenrieder, F. 1997. Value based management: Economic value added or Cash value added? (December). Social Science Research Network. (SSRN Link).

Weissenrieder, F. 2005. Why current profitability measures destroy billions in the industry. (August). Social Science Research Network. (SSRN Link).

Welch, J. B. and T. L. Kainen.1983. Risk-adjusted multiple hurdle rates: Better capital budgeting. Financial Executive (May): 32-38.

Woods, M., L. Taylor and G. C. Ge Fang. 2012. Electronics: A case study of economic value added in target costing. Management Accounting Research (December): 261-277.

Young, D. 1997. Economic value added: A primer for European managers. European Management Journal (August): 335-343.

Young, S. D. and S. F. O'Byrne. 2000. EVA and Value-Based Management: A Practical Guide to Implementation. McGraw Hill.