REGRESSION ANALYSIS OF KEY EFFICIENCY INDICATORS IN THE CONTEXT OF CORPORATE FINANCIAL MANAGEMENT BASED ON THE INDICATOR OF THE ECONOMIC VALUE ADDED (EVA)
Keywords:
KPI, DuPont model, ROE, ROA, ROS, EVA, VBM, regression analysisAbstract
As a tool for strategic management, key performance indicators perform two main functions: serve as indicators of the achievement of the corporate development goal, are necessary to motivate staff. To achieve these goals, the system of indicators should reflect the specifics of the company's activities and be scientifically sound, i.e. not chaotic. In this article, we observed 145 Russian companies in the oil and gas sector of the economy for 3 years and studied key performance indicator systems that they apply. As a result, it turned out that the currently used KPI systems are not very effective at the moment, since the indicators are chosen chaotically and are not linked to the general system of goals. We decided to test two practical management models based on interrelated indicators: the DuPont model and the EVA-based management model. As a result of testing the DuPont model, we obtained negative results. The multiple R was found to be only 0.15. The testing of the EVA model gave a positive result; we obtained a significant model (by the Fisher criterion) with a determination coefficient of 0.64. Therefore, we propose to develop KPI systems based on the EVA decomposition model.Downloads
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References
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Kaplan R.S., Norton D.P. (2001) The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. – Boston (Ma., USA): Harvard Business School Press
Drucker Peter F. Managing for Results (1964) HarperCollins Publishers, April 1964, 240 р.
Kaplan, Robert S. & Norton, David P (1992). The Balanced Scorecard – Measures that Drive Performance. Harvard Business Review, Jan-Feb, p. 71-79
McNair C.J., Lynch R.L., Cross K.F. (1990) Do Financial and Nonfinancial Performance Measures Have to Agree? Management Accounting, November, 28-35.
Lawrence S. Maisel, "Performance Measurement. The Balanced Scorecard Approach", Journal of Cost Management, Summer, 1992, p. 50.
Adams C., Roberts P. (1993) You Are What You Measure. Sterling Publications Ltd. - p. 504 -507
Rampersad Hubert K. Total performance scorecard (2013) SEA - Practical Application of Science Volume I, Issue 1 (1), 2013
Watts, T. & McNair-Connolly, C. J. (2012). New performance measurement and management control systems. Journal of Applied Accounting Research, 13 (3), 226-241
Vasile Burja, Radu Mărginean (2014). The Study of Factors that may Influence the Performance by the Dupont Analysis in the Furniture Industry. Procedia Economics and Finance, 16, 213-223
Ankudinov, A.B., Biktemirova, M.Kh., Lebedev, O.V. (2013) Financial structure determinants analysis of Russian oil companies. Neftyanoe khozyaystvo. Oil Industry, 8, 66–68.
Ampuero M., Goranson J., Scott J (1998) Solving the Measurement Puzzle: How EVA and the Balanced Scorecard Fit Together // The Cap Gemini Ernst & Young Center for Business Innovation. Issue 2 “Measuring Business Performance”. –P. 45-52.
Combining EVA with the Balanced Scorecard to improve strategic focus and alignment: 2GC Discussion Paper. – UK: 2GC Active Management, 2001.
Kaplan R.S., Norton D.P. (2001) The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. – Boston (Ma., USA): Harvard Business School Press
Published
2019-10-27
How to Cite
ZHUKOVETS, Tatiana O.; STRELNIK, Eugeniia U.; USANOVA, Diana S. REGRESSION ANALYSIS OF KEY EFFICIENCY INDICATORS IN THE CONTEXT OF CORPORATE FINANCIAL MANAGEMENT BASED ON THE INDICATOR OF THE ECONOMIC VALUE ADDED (EVA). Gênero & Direito, [S. l.], v. 8, n. 5, 2019. Disponível em: https://periodicos.ufpb.br/index.php/ged/article/view/48625. Acesso em: 21 sep. 2026.
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