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.

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).

Baginski, S. P. and J. M. Wahlen. 2003. Residual income risk, intrinsic values, and share prices. The Accounting Review (January): 327-351.

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.

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., P. Chen and G. Zhang. 2001. When capital follows profitability: Non-linear residual income dynamics. Review of Accounting Studies 6(2-3): 229-265.

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.

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.

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.

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).

Chiwamit, P., S. Modell and R. W. Scapens. 2017. Regulation and adaption of management accounting innovations: The case of economic value added in Thai state-owned enterprises. Management Accounting Research (December): 30-48.

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.

Du, F., D. H. Erkens, S. M. Young and G. Tang. 2018. How adopting new performance measures affects subjective performance evaluations: Evidence from EVA adoption by Chinese state owned enterprises. The Accounting Review (January): 161-185.

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.

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

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

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

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.

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

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

Gupta, M. and S. Baxendale. 2023. Integrating TOC, EVA, and ABC: A delicious cup of tea for improving performance. Cost Management (November/December): 20-32.

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.

Jimenez-Angueira, C. E. and N. J. Mastracchio Jr. 2020. Using the guideline company method in valuing closely held companies: A comparison of traditional indicators and economic value added. The CPA Journal (July/August): 44-48.

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. Chapter14

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.

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.

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.

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.

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).

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.