Value Based Performance Measures: Theoretical Evaluation and Empirical Analysis of Their Application and Value Relevance on a European Level (1st Edition 2020)

Nils Eikelmann describes the framework conditions for the application of value-based performance measures and critically analyses selected ones.

The disclosure of value-based performance indicators is important in order to demonstrate the successful management of a company and to satisfy the increasing information needs of investors.

However, companies adapt the developed theoretical concepts of value-based performance measures to their practical needs and thus investors are no longer able to compare the performance of companies.

In addition, there is a variety of different metrics from which companies can choose.

The empirical study aims to reduce existing research gaps and is divided into three parts: the analysis of annual reports of selected European companies, the calculation of a standardised value-based performance measure and a value relevance study in the form of an association study.