Improvement of EVA on Traditional Performance Measurement: An Application of Neural Network
Lin Chen, Zhilin Qiao · 2008
Economic value added (EVA) is a good method to measure the company's true value. This paper discussed on how to improve traditional performance measurement using EVA with neural network. It presented the integrated EVA performance measurement (IEPM) model and analyzed its superiority empirically with BP neural network. All the data came from China's listed companies. The final results showed that both the measurement ability and prediction ability of IEPM model were superior to those of traditional performance measurement. It suggests that introducing EVA to performance measurement well reflects the company's real economic profit and neural network model will be well applied to economic area, especially to the company's performance measurement.