THE PROBLEM OF MEASURING THE EFFECTIVENESS OF COMPANY

Authors

  • Alina Gorczyńska

DOI:

https://doi.org/10.58246/sjeconomics.v8i.478

Keywords:

enterprises efficiency, methods for assessing the effectiveness

Abstract

The purpose of this article is to trace the measures of performance of company. The efficiency is a fundamental economic categories. In order to determine the efficiency, there is its measurement. Literature presents different methods of
assessing efficiency. These methods may be quantitative, value, or mixed. Taking into account only the financial measures of effectiveness, they can be ex post and ex ante. At present, both theory and practice, indicate market value added (MVA) as a
more and more popular measure of the effectiveness of the company. Its calculation is based on estimates of economic value added EVA. Indeed, this method combines the advantages of measurement of ex ante and ex post. The calculation of EVA is based on the historical events. The calculation of MVA is founded on estimating the future income measured by economic value added EVA, having long-term forecasting.

Published

2011-06-30

Issue

Section

Article