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1、本科毕业论文（设计）外 文 翻 译原文：原文：Using EVA to measure performance and assess Of all the measures that corporations use to gauge their performance, none is more accurate or useful than economic value added, or EVA. Used to its fullest, EVA can help corporations achieve remarkable success. In fact, most of the
2、companies using EVA as their framework for financial management and incentive compensation have substantially outperformed their competitors.EVA is the term that Stern Stewart it destroys it.“Many corporate managers have forgotten this basic principle because they have been conditioned to focus on c
3、onventional accounting profits, which include a deduction for interest payments on debt but have no provision at all for the cost of equity capital. Worse still, most line managers base their decisions on operating profits, which dont even have a charge for debt. True profits dont begin until the co
4、st of capital, like all other costs, has been covered.Why is EVA so powerful? First, because it is the performance measure that is linked most directly, both theoretically and empirically, to a measure called MVA, market value added. MVA is the difference between the market value of an enterprise an
5、d the capital contributed by shareholders and lenders. The ultimate objective of every corporation should be to produce as much MVA as possible. No matter what goods or services they produce, all companies share one thing in common: They all areor should bein the business of creating wealth. They do
6、 that by taking capital from investors and making it more valuable by combining it with labor, raw materials, and other inputs to create things that society values more highly than the cost of all the inputs, including the opportunity cost of capital. Independent researchers, including James L. Gran
7、t of the Simmons Graduate School of Business, also have found that EVA tracks MVA better than other measures. Two researchers at the University of Pittsburgh, Kenneth Lehn, a former chief economist at the SEC, and Anil K. Makhija, discovered another interesting fact about EVA and MVA. Specifically,
8、they found that low MVA and EVA numbers more than double the chance that the chief executive officer will be sacked. Among the companies in their study with an MVA above the median, 8.6 percent had fired their CEOs. But among those with MVAs below the median, the CEO sack rate jumped to 20 percent.
9、The results were similar for EVA, with CEO turnover rates of 9 percent when EVA was above the median and 19.3 percent when it was below the median. Significantly, Lehn and Makhija found no relationship between CEO turnover and earnings, return on equity, or return on assets. EVA: The Centerpiece of
10、a Financial Management SystemThe direct link to value is only one of the facets that makes EVA a superior analytical tool for both operating and strategic decisions, revealing far more about the underlying dynamics of a business than any other performance measure. But companies reap the full benefit
11、s of EVA only when they use it as the centerpiece of their financial management system and as the deciding factor in all business decisions. Every company has a financial management system, though most are so complicated and confused that they hardly justify use of the word “system.“The confusion ar
12、ises from the fact that most companies employ a numbing array of measures to express financial goals and objectives. Strategic plans may be based on growth in earnings or revenues or market share (though rarely on shareholder wealth itself). Business units may be evaluated by return on investment or
13、 against a budgeted profit level. Individual products or product lines typically are judged by gross margins, cash flow, or market share. Finance departments usually analyze capital investments in terms of discounted cash flow and net present value, but weigh prospective acquisitions by the likely c
14、ontribution to growth in earnings or earnings per share. Whats more, all those measures (other than net present value) are poorly correlated with shareholder wealth and often are contradictory or conflicting in the sense that an increase in one will sometimes bring a decrease in another.Using incons
15、istent standards, goals, and terminology usually results in incohesive planning, operating strategy, and decision-making. With conflicting messages from different measures, the stage is set to perpetuate battles between warring staff fiefdoms, politicize measures in the sense that managers will pick
16、 and choose until they find one that supports what they want to do, and promote dysfunctional, wealth-destroying behavior.The EVA financial management system eliminates conflict and confusion by couching all business issues starting with strategy and moving all the way down to daily operating decisionsin the context of the impact on EVA. This allows all financial decisions to be modeled, monitored, evaluated, communicated, and compensated in terms of a single measure, and provides a
