Much debate exists about the effectiveness of Economic Value Added (EVA). We evaluate 11 common concerns about EVA and conclude that the major concerns are that EVA: (1) is distorted by the depreciation method, (2) might require complex adjustments; (3) is a short-term measure; (4) is an absolute...

This study provides insights about the motives for mergers and acquisitions (Mamp;As) as well as divestitures and the practices used to value targets during 1990-2001. The survey evidence shows that the primary motivation for Mamp;As is to achieve operating synergies while the top-ranked reason...