First published in: Worthington, Andrew and West, Tracey (2001) Economic Value-Added: A Review of the Theoretical and Empirical Literature. Asian Review of Accounting 9(1):pp. 67-86. Economic Value-Added: A Review of the Theoretical and Empirical Literatu

With increasing pressure on firms to deliver shareholder value, there has been a renewed emphasis on devising measures of corporate financial performance and incentive compensation plans that encourage managers to increase shareholder wealth. One professedly recent innovation in the field of internal and external performance measurement is a trade-marked variant of residual income known as economic value-added (EVA). This paper attempts to provide a synoptic survey of EVA’s conceptual underpinnings and the comparatively few empirical analyses of Acknowledgements: The authors would like to thank two anonymous referees for helpful comments on a