Divisional performance measures: EVAR as a proxy for shareholder wealth

This paper examines the changing forms of divisional performance measures used by UK companies presenting empirical evidence from a postal questionnaire. In particular it considers the extent and nature of the use of value based measures, such as Economic Value Added (EVAR), at the divisional level and the manner in which these new metrics are being applied. It examines the consistency between measures used centrally and at the divisional level. It also considers the reasons behind the implementation of new measures and the level of awareness of these new metrics amongst qualified management accountants.