EVA AND KEY PERFORMANCE INDICATORS: THE CASE OF AUTOMOTIVE SECTOR IN PRECRISIS, CRISIS AND POST-CRISIS PERIODS
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F18%3A63521082" target="_blank" >RIV/70883521:28120/18:63521082 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.14254/2071-789X.2018/11-3/5" target="_blank" >http://dx.doi.org/10.14254/2071-789X.2018/11-3/5</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.14254/2071-789X.2018/11-3/5" target="_blank" >10.14254/2071-789X.2018/11-3/5</a>
Alternative languages
Result language
angličtina
Original language name
EVA AND KEY PERFORMANCE INDICATORS: THE CASE OF AUTOMOTIVE SECTOR IN PRECRISIS, CRISIS AND POST-CRISIS PERIODS
Original language description
The choice of a suitable measure for company's performance and identification of key performance indicators are among the most frequently discussed topics in the field of corporate management strategizing. This paper shows how the value-based measure represented by Economic Value Added (EVA) and its pyramidal breakdown could act as facilitators in revealing value drivers. The univariate sensitivity analysis and the Stochastic Frontier Analysis are employed to identify the key performance indicators. The analysis is based on the samples of original equipment manufacturers and suppliers in Czech automotive sector. The automotive industry, in general, is sensitive to the business cycle. Therefore, KPIs of the multiple EVA/Sales distinguished for the samples in the Precrisis, Crisis and Post-crisis periods are identified. The detailed sensitivity analysis reveals several differences in these periods in both samples and across companies of different sizes. Some of the results are further confirmed by the Stochastic Frontier Analysis. Besides other indicators, value added is demonstrated as the key driver with the highest positive impact and personnel cost with the highest negative impact on EVA in all periods although the magnitude of these effects is changing. Analysis of the technical efficiency scores reveals that companies in the crisis periods are more similar to each other and are closer to the best-performing companies than in other periods.
Czech name
—
Czech description
—
Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
—
OECD FORD branch
50206 - Finance
Result continuities
Project
<a href="/en/project/GA16-25536S" target="_blank" >GA16-25536S: Methodology of Developing a Predictive Model of Sector and Company Performance in the Macroeconomic Context</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Economics and Sociology
ISSN
2071-789X
e-ISSN
—
Volume of the periodical
11
Issue of the periodical within the volume
3
Country of publishing house
UA - UKRAINE
Number of pages
18
Pages from-to
78-95
UT code for WoS article
000445942400005
EID of the result in the Scopus database
2-s2.0-85054503512