Biddle, Gary C.; Bowen, Robert M.; Wallace, James S. - 2023
regarding EVA’s alleged advantages. We begin by reviewing the theory that links the underlying concept of residual income to … shareholder value. Second, we discuss how Stern Stewart modifies residual income to produce its proprietary EVA metric and show … how median EVA compares with residual income, net income and operating cash flows over the period 1988-97. Third, we …