Papers on Value-Based Management

Here are some papers related to Value-Based Management: The list is not exhaustive.

Last modified: May 16, 2002


Acharya, Viral V., Kose John, and Rangarajan K. Sundaram, "Contract Renegotiation and the Optimality of Resetting Executive Stock Options." Working paper, New York University, December 1998.

Aggarwal, Rajesh and Andrew Samwick, "The Other Side of the Tradeoff: The Impact of Risk On Executive Compensation." Journal of Political Economy 107 (February 1999): 65-105.

Aggarwal, Rajesh K. and Andrew A. Samwick, "Executive Compensation, Strategic Competition, and Relative Performance Evaluation: Theory and Evidence." Journal of Finance 54 (December 1999): 1999-2043.

Allen, Jeffrey, "Reinventing a Corporation: The 'Satellite' Structure of Thermo Electron." Journal of Applied Corporate Finance 9 (Summer 1998): 38-47.

Anctil, Regina M., "Capital Budgeting Using Residual Income Maximization." Review of Accounting Studies 1 (1996): 9-34.

Anctil, Reginal M., J. S. Jordan, and Arijit Mukherji, "The Asymptotic Optimality of Residual Income Maximization." Working paper, University of California, Berkeley, June 1997.

Bacidore, Jeffrey, John Boquist, Todd Milbourn, and Anjan Thakor, "The Search for the Best Financial Performance Measure." Financial Analysts Journal 53 (May/June 1997): 11-20.

Balachandran, Sudhakar V. "The Role of Over-Investment and Under-Investment in the Performance of Firms that Implement Residual-Income Based Compensation." Working paper, Harvard University, February23, 2000.

Banham, Russ, "The Revolution in Planning." CFO (August 1999): 47-56.

Bank of America, "EVA and Shareholder Value in Japan." Journal of Applied Corporate Finance 9 (Winter 1997): 94-114.

Bank of America, "Bank of America Roundtable on Business Unit Efficiency versus Leveraging Corporate Competencies." Journal of Applied Corporate Finance 12 (Summer 1999): 48-68.

Bank of America, "Stern Stewart Roundtable on EVA and Corporate Outsourcing." Journal of Applied Corporate Finance 13 (Spring 2000): 88-107.

Bankera, Rajiv D., Seok-Young Leeb, Gordon Potterc and Dhinu Srinivasan, "An Empirical Analysis of Continuing Improvements Following the Implementation of a Performance-Based Compensation Plan." Journal of Accounting and Economics 30 (December 2000): 315-350.

Barclay, Michael J., Dan Gode, and S. P. Kothari, "Measuring Delivered Performance." Working paper #FR 96-07, University of Rochester, October 1997.

Beaver, William H., "Comments on `An Empirical Assessment of the Residual Income Valuation Model'", Journal of Accounting and Economics 26 (January 1999): 35-42.

Bernstein, Richard and Carmen Pigler, "An Analysis of EVA" Quantitative Viewpoint, Merrill Lynch & Co., December 19, 1997.

Biddle, Gary C., Robert M. Bowen, and James S. Wallace, "Does Eva® Beat Earnings? Evidence on Associations with Stock Returns and Firm Values." Journal of Accounting and Economics 24 (December 1998): 301-336.

Biddle, Gary C., Robert M. Bowen, and James S. Wallace, "Evidence on EVA." Journal of Applied Corporate Finance 12 (Summer 1999): 69-79.

Birchard, Bill, "Mastering the New Metrics." CFO (October 1994): 30-38.

Birchard, Bill, "Do it Yourself. CFO (March 1996): 27-40.

Birchard, Bill, "Closing the Strategy Gap." CFO (October 1996): 27-40.

Birchard, Bill, "Metrics for the Masses." CFO (May 1999): 64-72.

Birchard, Bill, and Alix Nyberg "On Further Reflection." CFO (March 2001): 57-64.

Black, Andrew, Philip Wright, John E. Bachman, and John Davies, In Search of Shareholder Value: Managing the Drivers of Performance. Pitman Publishing, Ltd., 1998.

Block, Stanley, "Do Value-Added Programs Add Value for Shareholders?" AAII Journal 20 (August 1998): 18-23.

Blumenthal, Robin Goldwyn, " 'Tis the Gift to be Simple." CFO (January 1998): 61-63.

Boston Consulting Group, "Meeting the Value Challenge." Booklet 1 of Shareholder Value Management, Boston Consulting Group.

Boston Consulting Group, "Shareholder Value Metrics." Booklet 2 of Shareholder Value Management, Boston Consulting Group, 1996.

Brickley, James A., Clifford W. Smith Jr., and Jerold L. Zimmerman, Organizational Architecture: A Managerial Economics Approach, Irwin Book Team, 1996.

Burton, Jonathan, "Human Frailties." Dow Jones Asset Management 3 (September/October 1999): 21-25.

Continental Bank, "Continental Bank Roundtable on Corporate Performance and Management Incentives." Journal of Applied Corporate Finance 4 (Fall 1991): 24-48.

Copeland, Tom, Tim Koller, and Jack Murrin, Valuation: Measuring and Managing the Value of Companies, 2nd edition. New York: Wiley, 1996.

Crystal, Graef, "The Problems with Executive Pay." Journal of Business Strategy (March/April 1998): 16-20.

Damodaran, Aswath, "Value Creation and Enhancement: Back to the Future." Contemporary Finance Digest 2 (Winter 1998): 5-51.

Dechow, Patricia M., Amy P. Hutton, and Richard G. Sloan, "An Empirical Assessment of the Residual Income Valuation Model." Journal of Accounting and Economics 26 (January 1999): 1-34.

Desai, Anand S., Ali Fatemi, and Jeffrey P. Katz, "Wealth Creation and Managerial Pay: MVA and EVA as Determinants of Executive Compensation." Working paper, Kansas State University, June 1998.

Dillon, Ray D. and James E. Owers, "EVA as a Financial Metric: Attributes, Utilization, and Relationship to NPV." Financial Practice and Education 7 (Spring/Summer 1997): 32-40.

Donaldson, Gordon, "A New Tool for Boards: The Strategic Audit." Harvard Business Review (July-August 1995): 99-107.

Donovan, John, Richard Tully, and Brent Wortman, The Value Enterprise: Strategies for Building a Value-Based Organization. Toronto: McGraw-Hill/Ryerson 1998.

Dorfman, John, "Shareholder Scoreboard." Wall Street Journal, February 29, 1996.

D'Souza, Julia, and John Jacob, "Why Firms Issue Targeted Stock." Journal of Financial Economics 56 (June 2000): 459-483.

Dunleavy, John, Elizabeth Hjelm, Henry Johansson, and Thomas Walther, Reinventing the CFO, New York: McGraw-Hill, 1997.

Einhorn, Steven G., Gabrielle Napolitano, and Abby Joseph Cohen, "EVA®: A Primer."Goldman Sachs, September 10, 1997.

Ehrbar, Al, EVA: The Real Key to Creating Wealth. New York: Wiley, 1998.

Ehrbar, Al, and G. Bennett Stewart III, "The EVA Revolution." Journal of Applied Corporate Finance 12 (Summer 1999): 18-31.

Ellig, Bruce R., "Pfizer's Long-term History with Broad-Based Stock Options." ACA Journal 8 (First Quarter 1999): 42-49.

Esty, Benjamin C., "Note on Value Drivers." Note 9-297-082, Boston: Harvard Business School Publishing, 1997.

Fabozzi, Frank J., and James L. Grant, editors, Value-Based Metrics: Foundations and Practice. New Hope, PA: Frank J. Fabozzi, & Associates, 2000.

Ferguson, Robert and Dean Leistikow, "Search for the Best Financial Performance Measure: Basics are Better." Financial Analysts Journal 54 (January/February 1998): 81-85.

Fernandez, Pablo, "EVA, Economic Profit and Cash Value Added Do Not Measure Shareholder Value Creation." Working paper, IESE Business School, May 2001.

Fernandez, Pablo, and Laura Reinoso, "Shareholder Value Creators and Shareholder Value Destroyers in USA: Year 2001." Working paper, IESE Business School, January 2002.

Finegan, Patrick T., "Maximizing Shareholder Value at the Private Company." Journal of Applied Corporate Finance 4 (Spring 1991): 30-45.

Garvey, Gerald T., and Todd T. Milbourn, "EVA versus Earnings: Does it Matter which is More Highly Correlated with Stock Returns?" Journal of Accounting Research 38 (Supplement 2000): 209-245.

George, Alastair, Ali Nokhasteh, Peter Sullivan, and Mike Young, "EVA Applied to European Markets." Working paper, Goldman Sachs Portfolio Strategy Research, November 1997.

Gilson, Stuart C. and Michael R. Vetsuypens, "Creating Pay-For-Performance in Financially Troubled Companies." Journal of Applied Corporate Finance 6 (Winter 1994): 81-92.

Gupta, Nina and Atul Mitra, "The Value of Financial Incentives: Myths and Empirical Realities." ACA Journal (Autumn 1998): 58-66.

Hall, Brian J., "The Pay to Performance Incentives of Executive Stock Options." Working paper #99-002, Harvard Business School, July 1998.

Halloran, Michael J., "Performance-Based Options: An Upcoming Debate." ACA Journal 7 (Spring 1998): 28-30.

Haspeslagh, Philippe, Tomo Noda, and Fares Boulos, "Managing for Value: It's Not Just About the Numbers." Harvard Business Review (July-August 2001): 65-73.

Haushalter, David, and Wayne H. Mikkelson, "An Investigation of the Gains from Specialized Equity: Tracking Stock and Minority Carve-Outs." Working Paper, University of Oregon, November 2000.

Hawawini, Gabriel and Claude J. Viallet, "Managing for Value Creation." Chapter 14 of Finance for Executives, Cincinnati: South-Western College Publishing, 1998.

Herzberg, Martin M., "Implementing EBO/EVA® Analysis in Stock Selection." Journal of Investing 7 (Spring 1998): 45-53.

Hodak, Marc, "How EVA Can Help Turn Mid-Sized Firms into Large Companies."Journal of Applied Corporate Finance 7 (Spring 1994): 98-102.

Hogan, Chris, and Craig Lewis, "The Long-Run Performance of Firms Adopting Compensation Plans Based on Economic Profits." Working Paper 99-08, Owen School of Management, Vanderbilt University, April 1999.

Ittner, Christopher D., and David F. Larcker, "Innovations in Performance Measurement: Trends and Research Implications." Journal of Management Accounting Research 10 (1998): 205-238.

Ittner, Christopher D., and David F. Larcker, "Assessing Empirical Research in Managerial Accounting: A Value-Based Perspective." Journal of Accounting and Economics 32 (2001): 349-410.

Ittner, Christopher D., David F. Larcker, and Madhav V. Rajan, "The Choice of Performance Measures in Annual Bonus Contracts." The Accounting Review 72 (April 1997): 231-255.

Jackson, Alfred, "The How and Why of EVA at CS First Boston." Journal of Applied Corporate Finance 9 (Spring 1996): 98-103.

Jackson, Al, Michael J. Mauboussin, and Charles R. Wolf, "EVA Primer." New York: CS First Boston, November 1995.

Jensen, Michael C., and William H. Meckling, "Specific Knowledge and Divisional Performance Measurement." Journal of Applied Corporate Finance 12 (Summer 1999): 8-17.

Kaplan, Robert S. and David P. Norton, The Balanced Scorecard. Boston: Harvard Business School Press, 1996.

Keating, A. Scott, "Determinants of Divisional Performance Evaluation Practices." Journal of Accounting and Economics 24 (December 1997): 243-273.

Kleiman, Robert, "Some New Evidence on EVA Companies." Journal of Applied Corporate Finance 12 (Summer 1999): 80-91.

Knight, James A., Value Based Management, New York: McGraw-Hill, 1998.

Kontes, Peter W., Michael C. Mankins, and James M. McTaggart, The Value Imperative, New York: The Free Press, 1994.

Kramer, Jonathan K. and George Pushner, "An Empirical Analysis of Economic Value Added as a Proxy for Market Value Added" Financial Practice and Education 7 (Spring/Summer 1997): 41-49.

Kramer, Jonathan K. and Jonathan R. Peters, "An Interindustry Analysis of Economic Value Added as a Proxy for Market Value Added" Journal of Applied Finance 11 (2001): 41-49.

Leahy, Tad, "Making Their Mark." Business Finance Magazine 6 (June 2000): 49-54.

Lehn, Kenneth and Anil K. Makhija, "EVA & MVA as Performance Measures and Signals for Strategic Change." Strategy & Leadership (June 1996): 34-38.

Lehn, Kenneth and Anil K. Makhija, "EVA, Accounting Profits, and CEO Turnover: An Empirical Examination, 1985-1994." Journal of Applied Corporate Finance 10 (Summer 1997): 90-97.

Lyons, Jill E., and Patrick S. McGurn, "Performance-Based Equity Awards: The Road to Real Value." ACA Journal 7 (Spring 1998): 82-85.

Madden, Bartley J., "The Case for Cash Flow ROI in Linking Company Performance with Market Valuation." Valuation Issues 1 (November 1995): 4-8.

Madden, Bartley J., "CFROI Valuation Model - Part II." Valuation Issues 1 (December1995): 4-6.

Madden, Bartley J., "The CFROI Life Cycle."Journal of Investing 5 (Summer 1996): 10-20.

Madden, Bartley J., "CFROI Valuation Model." Journal of Investing 7 (Spring 1998): 31-44.

Madden, Bartley J., CFROI Cash Flow Return on Investment Valuation: A Total System Approach to Valuing the Firm. Butterworth, 1998.

Mahoney, William F., "EVA/CFROI: Monsanto Focusing on New Metrics to Improve Business, Valuation." Valuation Issues 2 (May/June 1996): 1-4.

Mauboussin, Michael, "Thoughts on Valuation." Credit Suisse First Boston, October 21, 1997.

Mauboussin, Michael, Alexander Schay, and Stephen G. Kawaja, "Counting What Counts." Credit Suisse First Boston, February 4, 2000.

McCormack, John L. and Jawanth Vytheewaran, "Hoe to Use EVA in the Oil and Gas Industry." Journal of Applied Corporate Finance 11 (Fall 1998): 109-127.

McGough, James C., and Sean P. Brannon, "Unleashing Trapped Value with Business Unit Incentive Plans." ACA Journal 8 (First Quarter 1999): 50-59.

Milano, Gregory V., "EVA and the 'New Economy'." Journal of Applied Corporate Finance 13 (Summer 2000): 118-128.

Milunovich, Steven, "EVA in the Computer Industry." Journal of Applied Corporate Finance 9 (Spring 1996): 104-115.

Muehlhauser, G. Robert, "Putting Performance Measures to Work." Journal of Applied Corporate Finance 8 (Summer 1995): 47-54.

Murphy, Kevin J., "Executive Stock Options: An Economists Perspective." ACA Journal 7 (Spring 1998): 88-90.

Murphy, Kevin J., "Performance Standards in Incentive Contracts." Journal of Accounting and Economics 30 (December 2000): 245-278.

Myers, Randy, "Metric Wars." CFO 12 (October 1996): - .

Myers, Randy, "Measure for Measure." CFO 13 (November 1997): 44-56.

Nelson, James E., "Linking Compensation to Business Strategy." Journal of Business Strategy (March/April 1998): 25-27.

Nobles, William, and Judy Redpath, "Market Based Management: A Key to Nucor's Success." Journal of Applied Corporate Finance 10 (Fall 1997): 104-116.

O'Byrne, Stephen F., "EVA and Market Value." Journal of Applied Corporate Finance 9 (Spring 1996): 116-125.

O'Byrne, Stephen F., "EVA and Shareholder Return." Financial Practice and Education 7 (Spring/Summer 1997): 50-54.

O'Byrne, Stephen F., "Total Compensation Strategy" Studies in International Corpoate Finance and Governance Systems, edited by Donald H. Chew, New York, Oxford, 1997.

O'Byrne, Stephen F., "Executive Compensation." Chapter E9, Handbook of Modern Finance edited by Dennis E. Logue. Boston: Warren, Gorham & Lamont, 1997.

O'Byrne, Stephen F., "The Measurement of Post-Acquisition Performance: Toward a Value-Based Benchmarking Methodology." Journal of Applied Corporate Finance 11 (Summer 1998): 107-119.

O'Byrne, Stephen F., "EVA and Its Critics." Journal of Applied Corporate Finance 12 (Summer 1999): 92-96.

O'Byrne, Stephen F., "Does Value Based Management Discourage Investment in Intangibles?" Chapter 5, Value-Based Metrics: Foundations and Practice, edited by Frank J. Fabozzi and James L. Grant. New Hope, PA: Frank J. Fabozzi & Associates, 2000.

Ohlson, James A., "Residual Income Valuation: The Problems." Working Paper, New York University, March 2000.

Olsen, Eric E. and James A. Knight, "Managing for Value." Chapter E10, Handbook of Modern Finance edited by Dennis E. Logue. Boston: Warren, Gorham & Lamont, 1995.

Oyer, Paul, "Why do Firms Use Incentives that Have No Incentive Effects?" Working Paper, Northwestern University, April 2000.

Peterson, David R. and Pamela P. Peterson, Company Performance and Measures of Value Added. Charlottesville: The Research Foundation of the Institute of Chartered Financial Analysts, 1996.

Rajan, Madhav V., "Discussion of EVA versus Earnings: Does it Matter which is More Highly Correlated with Stock Returns?" Journal of Accounting Research 38 (Supplement 2000): 247-254.

Rappaport, Alfred, "Executive Incentives vs. Corporate Growth." Harvard Business Review 56 (July-August 1978): 81-88.

Rappaport, Alfred, "Selecting Strategies That Create Shareholder Value." Harvard Business Review (May-June 1981): 139-149.

Rappaport, Alfred, Creating Shareholder Value, revised edition. New York: Free Press, 1998.

Rappaport, Alfred, "New Thinking on How to Link Executive Pay with Performance." Harvard Business Review (March-April 1999): 91-101

Riceman, Stephen S., Steven F. Cahan, and Mohan Lal, "Do Managers Perform Better Under EVA Bonus Schemes?" Working paper, Massey University.

Rogerson, William P., "Intertemporal Cost Allocation and Managerial Investment Incentives: A Theory Explaining the Use of Economic Value Added as a Performance Measure." Journal of Political Economy 105 (August 1997): 770-795.

Ryan, Harley E. Jr., and Emery Trahan, "The Utilization of Value-Based Management: An Empirical Analysis." Financial Practice and Education 9 (Spring/Summer 1999): 46-58.

Shaked, Israel, Allen Michel, and Pierre Leroy, "Creating Value Through E.V.A. -- Myth or Reality." Strategy & Business 9 (Fourth Quarter 1997): 41-52.

Sheehan, Timothy J., "To EVA or Not to EVA: Is That the Question?" Journal of Applied Corporate Finance 7 (Summer 1994): 85-87.

Sloan, Richard G., Using Earnings and Free Cash Flow to Evaluate Corporate Performance." Journal of Applied Corporate Finance 9 (Spring 1996): 70-78.

Slywotzky, Adrian J. and David Morrison, The Profit Zone. New York: Random House, 1997.

Solomons, David, Divisional Performance: Measurement and Control, New York, First M. Wiener Publishing Inc., 1965.

Stern, Joel, "EVA and Strategic Performance Measurement." Global Finance 2000, The Conference Board, 1996.

Stern, Joel, "EVA in Europe: A Roundtable Discussion." Journal of Applied Corporate Finance 11 (Winter 1999): 98-121.

Stern, Joel and G. Bennett Stewart III, "EVA Roundtable" Journal of Applied Corporate Finance 7 (Summer 1994): 46-70.

Stern, Joel M., G. Bennett Stewart III, and Donald H. Chew, Jr., "The EVA Financial Management System" Journal of Applied Corporate Finance 8 (Summer 1995): 32-46.

Stewart III, G. Bennett, The Quest for Value, Harper Collins Publishers Inc., 1991.

Stewart III, G. Bennett, "EVA: Fact and Fantasy" Journal of Applied Corporate Finance 7 (Summer 1994): 71-84.

Stewart III, G. Bennett, "EVA Works - But Not if You Make These Common Mistakes" Fortune (May 1, 1995): 117-118.

Stoughton, Neal M. and Josef Zechner, "Optimal Capital Allocation Using RAROC and EVA®." Working paper, July 1998.

Tully, Shawn, "The Real Key to Creating Wealth" Fortune (September 20, 1993): 38-50.

Ubelhart, Mark C., "Case Studies of Shareholder-Value Incentives." ACA Journal (Autumn 1994): 90-103.

Uyemura, Dennis G., Charles C. Kantor, and Justin M. Pettit, "EVA for Banks: Value Creation, Risk Management, and Profitability Measurement." Journal of Applied Corporate Finance 9 (Summer 1996): 94-113.

Wallace, James S., "Adopting Residual Income-Based Compensation Plans: Evidence Of Effects on Management Actions." UMI Dissertation Services, Ann Arbor.

Wallace, James S., "EVA® Financial Systems: Management Perspectives." Advances in Management Accounting 6 (1998): 1-15.

Wallace, James S., "Adopting Residual Income-Based Compensation Plans: Do You Get What You Pay For?" Journal of Accounting and Economics 24 (December 1998): 275-300.

Weaver, Samuel C. "Measuring Economic Value Added: A Survey of the Practices of EVA Proponents." Journal of Applied Finance 11 (2001): 50-60.

Weissenrieder, Fredrik, "Value Based Management: Economic Value Added or Cash Value Added?" Working paper, FWC AB, December 1997.

Wenner, David L. and Richard W. LeBer, "Managing for Shareholder Value - From Top to Bottom" Harvard Business Review (November-December 1999): 2-8.

Zaik, Edward, John Walter, Gabriela Kelling, and Christopher James, "RAROC at Bank of America: From Theory to Practice." Journal of Applied Corporate Finance 9 (Summer 1996): 83-93.


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