THE ADDED ECONOMIC VALUE – AN INSTRUMENT FOR THE PERFORMANCE MEASUREMENT
THE ADDED ECONOMIC VALUE – AN INSTRUMENT FOR THE PERFORMANCE MEASUREMENT

Summary/Abstract: The added economic value is the best known performance indicator in the specialized literature. The reasoning which stays at the basis of this indicator is simple: its own equity, as borrowed capital, has a specific cost. Unlike the cost of the borrowed capital, which shows explicitly in the income and loss account, the cost of equity, expressed as the remuneration payable to the investors, has a different accounting treatment.

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