经济增加值外文文献翻译译文

外文文献翻译译文一、外文原文原文：Economic Value AddedEconomic Value Added (EV A), when applied properly in a company, impacts all departments and decisions. The equation for EV A as well as the adjustments that mustbe made to current accounting practices is the basis for an understanding of EV A. The success of EV A is displayed as companies that have implemented EV A to varying degrees are compared with companies that have not implemented EV A. Once the argument for the overall superiority of EV A is made, traditional performance measures and current accounting practices are evaluated. Then, the importance of creating value within corporations becomes apparent. Finally, a detailed example of the implementation process that took place several years ago at Harsco argued in favor of all companies adopting EV A.Economic Value AddedEconomic Value Added (EV A), for the last two to three decades, has been receiving an increasing amount of attention. Though it has become aviable business practice for many large corporations, it still has not successfully altered the approach of many corporate leaders. EV A approaches the financial aspect of corporations from a different perspective than that to which most executives are accustomed. To raise awareness of the benefits of EV A, it is imperative to gain a basic understanding of the ideas, concepts, and implications associated with the implementation of policies at corporations that have adopted EV A.EV A EquationAt its core, the concept of Economic Value Added is relatively simple. The complexity is that the concept must be applied to every business decision at all levels of a particular company to realize the desired long-run effects (Stewart, 1991). The equation for EV A is as follows:EV A = Net Operating Profit After Taxes (NOPAT) – (Capital*The Cost of Capital) .This idea helps managers integrate two basic principles of finance into their daily decision-making. First, the primary financial objective of all companies should be to maximize shareholder wealth. Second, the valu e of a company is based on investors’ expectations of future earnings exceeding or falling short of the cost of capital. The cost of capital is a decisive measure pertaining to computing EV A (Stewart, 1991). The cost of capital is the rate of return a company would expect to receive had they invested in a different venue with a similar risk (Cost of Capital). This amount is the figure that determines whether a corporation is performing well or badly. Although it may appear to be a cash cost, it is actually an opportunity cost. Calculating the trade-off between risk and reward derives an opportunity cost. The cost of capital consists of a risk free rate of return and a risk premium. Long-term U.S. government bonds are considered risk free because of the value of the entire economy as well as the taxing authority of the government. To illustrate, assume the rate for risk free government bonds is 6% and add to it the risk premium. Although, risk premiums vary by company and industry, most investors expect from 2% to 10% in addition to the government bond rate. Assume that the risk premium is 4%, add the risk free rate of 6%, and the cost of capital in this example would be 10%.The Success of EV ATo quantify the extent to which companies that implement EV A outperform their competitors, data were collected by Stern Stewart (2002b). Companies have seen high returns when they utilize Stern Stewart's EV A framework for performance management, value-based planning and incentive compensation. Throughout the 1990s these same companies, on average, outperformed their competitors by 8.3% annually during the first five years after they first adopted EV A. Improved operating margins, stronger cash flow generation, and quicker asset turnover were the catalysts responsible for greater stock market performance, which caused a $116 billion increase in shareholder wealth beyond that of their competitors.The margin of performance is greater still for companies that use EV A as a performance measure and a tool for determining management compensation. Companies that only used EV A asa performance measure did not obtain such impressive results (Stewart, 2002b).EV A vs. Other Financial Performance MeasurementsThose in favor of using EV A as a performance measure argue that it is superior to other performance measures for the four following reasons: it is nearer to the real cash flows of the business entity; it is easy to calculate and understand; it has a higher correlation to the market value of the firm and it aligns the goals of management with the interests of the shareholders. EV A is superior to conventional measures such as Return on Investment (ROI), Return on Equity (ROE), and Return on Assets (ROA) because these calculations are based on accounting figures. Using Generally Accepted Accounting Principles (GAAP), the assets in the balance sheet are carried based on historical costs while, with the exception of depreciation, revenues and expenses are recognized as either a profit or a loss at their current value. Due to this inaccuracy in the calculation of the value of assets, the rates of return do not accurately determine the actual return on a given investment. As such, the rate of return is usually lower in the first few years and higher in the latter years. However, if the value of the mix of assets is close to the current value of the assets, the distortion will not be as significant as when the value of the assets is far below the current value. Most companies rarely have the needed asset mix to make these accounting measures accurate; therefore, they cannot be regarded as true indications of the performance of the company.EV A as a Corporate PhilosophyEV A is a concept that is not easy to understand but can be implemented with care at every level of an organization. Corporations across the globe, even some state owned enterprises in the United States, have adopted EV A as a corporate philosophy. One important advantage of EV A is that it improves business literacy because of its simplistic concept. Business literacy is the attempt of management to make all employees aware that for any activity to create value, the return needs to exceed the cost of capital for that particular activity. It also takes into consideration the cost of capital, which many other conventional techniques fail to incorporate into their calculations.What Determines Company Value?In dealing with the topic of Economic Value Added, many questions surface for which the most astute professionals in business cannot agree. The most common of these is how one is to determine the value of a company. To begin, several myths that abound in the market are followed by some valuation concepts. If one was to ask several top executives how value was determined and share prices set, there may be answers using the combination of several financial performance factors such as earnings, growth rates, returns book values, cash flows, dividends, and trading volumes. With this wide variety of answers, it is easy to understand the confusion many top managers have in determining what investors want. Therefore, they cannot realistically make wise business decisions that will maximize shareholder wealth – the ultimate goal in business (Stewart, 1991).Earnings or Earnings per ShareOne area of controversy is determining whether earnings or cash flows determine stock prices. To calculate share prices, one may use earnings per share (EPS) and the price/earnings multiple (P/E). This method is particularly appealing because it is so simple. However, it is the very simplicity that makes it an unreliable measure of value. The accounting model asserts that Wall Street determines share prices by multiplying EPS by an appropriate P/E. If this were the case, a company with EPS of $0.50 and a P/E of 5, would sell at $2.50. The major fault with this method is that it assumes that the P/E remains static. In reality, P/E changes frequently with acquisitions, new investment opportunities, and with changes in financial structure and accounting policies. Therefore, EPS do not provide a reliable measure of value. In contrast, the economic model assumes share prices are the result of evaluations of future cash flows and the risk of the cash receipts of a business by sophisticated investors. In many firms, cash flow and earnings rise and fall simultaneously, so it is difficult to determine which factor is the primary cause for the resulting stock price. Studies have been conducted to find the events, which cause cash flow and earnings to depart in a particular company. These studies conclude that future cash flows are more important in the calculation of share prices than earnings. Investors care more about cash than a company’s reported earnings. Many companies inflate their sales to show higherearnings for the benefit of the investor. If an investor is to invest wisely, he will ignore the earnings and look at the company’s future cash flows to be produced during the business’ existence.Economic Model vs. Accounting ModelThe most important difference between the two models is that the accounting model relies on the balance sheet and income statement while the economic model relies on uses of cash and its source. This becomes significant when a company chooses from a variety of accounting methods. Using the accounting model, it makes a big difference whether a cash outlay is expensed on the income statement or capitalized on the balance sheet because earnings are the driving force. Using the economic model, it only matters where the cash outlay is recorded when it affects taxes. Ultimately, earnings are affected by the accounting procedures a company uses, such as choosing an inventory costing method, amortizing goodwill, accounting for research and development, and determining book value.Corporation ValuationDecisions in any company should be made exclusively on the basis of which decisions increase the value of the company the most. Therefore, a method is needed to determine the outcome of different business strategies and financial structuring in relation to the company’s stock market value. That metho d is to project the most likely scenarios for a variety of business decisions in areas such as costs, benefits, risks, and rewards. Not only can a valuation framework provide management a way to select a strategy, but also, it can place a value on a consolidated company and its individual business units as well as on acquisition and divesture candidates.Corporate valuations can determine whether a company is currently trading for fair value and whether it should raise or retire equity at the current prices. Privately held companies should conduct valuations periodically to determine the share value for employee stock ownership plans as well as for management incentives. It is helpful for privately held companies to have this valuation done as a way of determining their progress in creating value for the firm.A valuation framework for individual business units shows which ones areperforming well by creating value and which are underperformers. Doing so will give management a clearer picture as to which business units need to be invested in most heavily and which ones should be divested or restructured to maximize their value. This is crucial for any business because poor performance of part of one company’s business has the capability to destroy market value. A study conducted by Stewart (1991) found that in one particular company, 30% of its business accounted for 200% of its total market value while the other 70% of the business was destroying 100% of its market value. Hence, the company was unknowingly devoting large amounts of resources to business that never earned its cost of capital. Lastly, a valuation framework will help management determine how much it should pay for a potential acquisition. Overpaying will quickly reduce the acquirer’s own market va lue while increasing its chances for getting acquired in the future. Valuation can also be used in reverse. As mentioned previously, stock prices convey the expectations of investors regarding a company’s prospects and risks. Therefore, a valuation framewo rk can be used to develop projections that equate to that company’s actual market value. Then an investor can use these projections to set break-even goals. This will ensure that investors earn their required rate of return on initial investment (Stewart, 1991). ConclusionEconomic Value Added is a topic that encompasses all levels of business operations. It is imperative that measures be taken to ensure all members of a company are committed to the principles of EV A. “EV A is more than a performance measure; it is the focal point of a management system and a mindset. EV A affords the Company the ability to establish clear, accountable links between strategic thinking, capital investment, day-to-day operating decisions, and shareholder value” (Stewart, 2003, 1).Source: MD Houle ,2008."Economic Value Added".Senior Honors Papers,pp.1-29./cgi/viewcontent.cgi?article=1046&context=honors二、翻译文章译文：经济增加值经济增加值（EVA），当适当应用于一个公司时会影响各部门和决定。

本科毕业论文外文翻译外文译文题目（中文）：EV A –经济增加值：从间接证据中筛选出直接解释学院: 管理学院专业: 会计学学号: ------------------------学生姓名: -----------------指导教师: --------------日期: 2012年9月1号EVA – Economic Value Added：Sifting the Direct from the CircumstantialJoseph SammutSource：–经济增加值从间接证据中筛选出直接解释约瑟夫·萨穆特来源：介绍如果存在一个脐带链接三大支柱业务,管理,会计,经济，毫无疑问，一个可信的竞争者应该是EV A(经济增加值)。

其原因在于它富于变化的根源。

对于一个明确规定的财务目标，研究人们的行为和如何直接操纵这种行为。

在这个方向，EVA理论走了很长的路。

它突出本身是一个非常规和非法定科学，在这两个人类行为和利润测量这样声称是最优的两个链接之间在寻找未来完美的商业项目。

这种断言有很多的支持者和反对者，伴随着潜在的疑点，,它可以是介于目光短浅或一个空想和是最可能的情况两者之间。

沿着这些方向是一些未被发现的东西。

这篇简短论文可以详细分析经济增加值(EVA)的涵义即既是金融性能测量工具也是一个密探,矛头直指接下来的管理革命后的全球化时代,即绩效工资的引入。

本文将解决关键的问题也是EVA联结科学管理、会计和经济学通过将直接转化为的间接证据努力深入这个问题。

最后本文将成为一个通过提交作者的看法提出的关键点。

2. EVA的涵义最简单的形式,EVA被定义为业务操作中的货币残留的扣除资本成本。

它的正式术语相当于税后净营业利润 (NOPAT)更少的股本成本。

即通过考虑到的资本成本，将账目收益灵巧的转换为经济收益。

表面上看起来这个概念是革命性的和新潮的。

然而，其创意不过仅限于包装，这个想法至少可以追溯到一百年,到一个特定的名字——阿尔弗雷德·马歇尔。

证券市场发展与经济增长外文文献翻译中英文2020英文The relationship of renewable energy consumption to stock marketdevelopment and economic growth in IranSeyedeh Razmi，Bahareh Bajgiran，etcAbstractThis paper investigates the relationship of two types of renewable energy consumption (total hydropower, wind, solar and nuclear energies, and total combustible renewable and waste) to stock market value and economic growth in Iran. An autoregressive distributive lag (ARDL) model was used for data from 1990 to 2014 and results show that stock market value affects both groups of renewable energies in the long run. Growth rate significantly affects total hydropower, wind, solar, and nuclear energies in both the short and long run, although it is only significant in the short run for combustible renewable and waste energies. Neither type of renewable energy consumption affects growth in either the short or long run.Keywords：Renewable energy consumption，Stock market，Growth，ARDLSustainable development, as one of the main goals of every economy, encourages policymakers to use energy sources that emit the fewest pollutants to the environment. Today, renewable energy resources havebecome increasingly more important due to the fact that they have fewer negative impacts on the environment than other sources of energies and the growing limitations of fossil fuels. Most developed countries that are in agreement with the International Atomic Energy Agency and the Kyoto Protocol have established a framework to encourage greater usage of renewable energy sources Maji. Consequently, countries that are rich in non-renewable energies should consider ways to offset the economic slowdown that would be caused due to the loss of demand from developed countries. Apart from environmental issues, substituting domestic renewable energies also protects countries against external economic crises. As countries reduce fuel imports, their economies become less vulnerable to external crises. The importance of economic growth as the main objective of all economies has led a lot of studies towards finding the impact of renewable energies on economic growth. For example, one study using the ARDL method discovered that renewable energy and economic growth have a negative relationship in the long run in Nigeria, although an insignificant relationship exists in the short run. A negative impact of renewable energy on economic growth was also found in Turkey, South Africa, and Mexico by Ocal and Aslan. However, Destek found a positive relationship between the two variables was discovered for India. Aïssa et al tried to discover the relationship among renewable energy, output, and trade by using panel cointegrationof 11 African countries. They did not find any causality between renewable energy with output and trade in the short run. However, in the long run, Jebli and Youssef discovered the impact of renewable energy on output.Apergis and Payne employed panel cointegration for investigating the casual relationship between renewable energy consumption and economic growth for OECD countries. They found bidirectional causality between variables both in the short and long run. Similar results were discovered for Central American countries by Apergis and Payne. Using panel data, Chang et al found bidirectional causality between economic growth and renewable energy for G7 countries. However, these results were not approved for individual countries. Tugcu et al also discovered similar results for G7 countries. Using the panel cointegration method, Pao et al investigated the causal effect of clean and non-clean energies on economic growth for Mexico, Indonesia, South Korea, and Turkey. They found one-way causality running from renewable energy to economic growth in the long-run and two-way causality in short-run.Apart from economic growth, financial market development indexes are among the variables of interest to economists in energy studies. Financial market development can affect energy demand by influencing economic growth as well as reducing households’ constraints. Financial markets affect economic growth by transferring funds, determiningcapital prices, facilitating transactions, as well as distributing risk management. Facilitating consumer lending is another impact of financial markets on energy consumption, as easier access to financing for energy purchases increases consumer demand for energy. In other words, financial market development may increase energy consumption by reducing financial risk and lending costs and increasing access to financial investments and advanced technologies. Financial market development can also reduce the risks to consumers and businesses and thereby become an important factor in generating wealth in the economy. Therefore, the existence of financial market development is considered as a reliable lever for consumers and businesses which increases economic activity and energy demand.Kakar et al considered the relationship between financial market development, economic growth, and energy consumption in Pakistan in the 1980s. Using Johansen cointegration and Granger causality, the results showed the long-run effects of the financial market development on energy consumption, however its impact in the short run was negligible. Several studies have confirmed the relationship between financial development, energy consumption and economic growth. Stock market developments also play an important role in allocating funds for clean energy projects. Sadorsky stated that stock market developments would increase the demand for energy in emerging economies, whileChang indicated that the development of market capitalism in emerging countries would stimulate investment and energy consumption. This study investigates the relationship between renewable energy consumption, the stock market value,1 and GDP growth in Iran. It must be noted that, to the best knowledge of the authors, there have not been any studies on financial market development and renewable energies thus far; therefore, this research has referred to studies on total energy consumption and financial market development.Renewable energies can play an important role in reducing emissions of pollutants, such as carbon dioxide and other greenhouse gases. Features such as environmental compatibility, fewer pollutive effects, renewability, and global reliability have led these types of energies to play an important role in the world's energy supply system on a day-to-day basis. Nowadays, Iran is suffering from air pollution, and the impact on public health is a well-known problem. Therefore, consuming renewable energies can be effective in both achieving clean air and increasing the overall health and well-being of the society. According to recent changes in Iran's energy consumption laws, governmental units such as the Ministry of Energy and the Ministry of Oil have been obliged to support clean energy consumption.Iran has many capacities in which to use hydro, wind, solar and other kinds of renewable energies due to its geographic environment.Despite its high potential for employing renewable resources, renewable energies have not yet been properly exploited. Renewable energy consumption in Iran is still less than 4% of total energy consumption. Therefore, Iran needs to devote particular attention to the various aspects of renewable energies to maintain its position as an energy supplier. Regarding foreign sanctions that have reduced the speed of foreign investment in non-renewable energy, the Iranian government also needs to increase its support to the private sector to attract more investment in renewable energies. This research helps policymakers in Iran and other countries meet their goals for using renewable energies by investigating the relationships of the three aforementioned variables.This study differs from other research on this issue as most papers in this field study economic growth, non-renewable energy consumption, and pollution (CO2) by panel data models. For our research objective, we make three key contributions. First, financial markets, especially the stock market, can help developing industries to raise and circulate capital within the broader economic system. While many studies have examined the relationship between financial development and economic growth with non-renewable energies, there is a gap in research pertaining to renewable energies. The study covers this gap by focusing on of renewable energy that have largely been ignored in prior research. Second, in contrast to the studies applying cross-country panel causality testing,especially in developed countries, we apply an ARDL model as a robust methodology for Iran's economy. Third, studies on renewable energies typically use one type of renewable energy source, while this study compares two groups of renewable energies: total hydropower, wind, solar, and nuclear energies and combustible renewable and waste energies. We examine the effect of economic growth on the two types of renewable energy consumption and conversely, the effect of the two types of renewable energy consumption on economic growth. This type of analysis has the potential to support future policy recommendations.For our estimation model we have carried out the following steps. First, after a thorough review of theoretical and empirical studies, we have selected our models. Next, we have verified the unit roots and integration tests for long-run relationships. Subsequently, we have applied two models for each of the long-run and short-run analyses. In each model, the dependent variables are: economic growth and renewable energy type. Finally, we have conducted diagnostic tests to confirm the reliability of the results.This paper examines the relationship between two types of renewable energy consumption, including consumption of hydro, solar, wind and nuclear energies as well as that of combustible renewables and waste energies, stock market value, and economic growth in Iran over the period 1990–2014 using the ARDL method. Such a study on Iran is verynecessary, as studies in this area are rare, and only small steps have been taken towards using renewable energies. The use of renewable energy in Iran is still less than 4% of the total energy consumption in the country. Therefore, more robust studies must be done regarding renewable energies. Results show the existence of short- and long-run relationships between variables in two models where the dependent variables are re (consumption of water, solar, wind and nuclear energies), gr (economic growth rate), and rec (consumption of combustible renewable and waste energies).The coefficient of st (stock market value) is insignificant for both re and rec as dependent variables in the short run, meaning that in the short run, financial markets have no effect on renewable energy consumption; however, it is positively significant in the long run for both groups. Therefore, the stock market value is an important positive factor affecting renewable energies in the long run. Growth rate significantly affects re in both the short and long run, although it is only significant in the short run for rec as a dependent variable. Neither type of renewable energy affects growth in the short run and long run. This result is similar to Dogan that found little effect of renewable energy consumption on economic growth in Turkey. Destek found negative effect of renewable energy consumption for South Africa and Mexico. However, Adams et al discovered positive effect of renewable energy consumption on economicgrowth in 30 Sub-Saharan African (SSA) countries.By examining the relationship among two groups of renewable energy consumption, stock market value, and economic growth, the results of this study highlight a few points for policymakers in Iran who are looking for ways to improve public health by using clean energies. First, stock market development in Iran has led to an increase in renewable energy consumption for total hydropower, wind, solar, and nuclear energies, while has not affected the consumption of combustible renewable and waste energies. The positive effect of stock market value on long-run economic growth shows that stock market development can increase renewable energy consumption in the long run. Second, economic growth can also lead to an increase in renewable energy consumption of the first group so policies towards increasing economic growth also lead to renewable energy consumption of first group. Third, given Iran's recent investments in the development and use of renewable energy technologies, the results of this research show that the country should continue to develop its renewable energy infrastructure in order to reap the full benefits.Responses to the following questions can be a guide for policymakers to achieve sustainable development and to increase the health and well-being of the society.•Do renewable energies have a positive effect on economic growth?•Does the value of the stock market have a positive effect on economic growth?•Does the value of the stock market have a positive effect on renewable energy?If the value of the stock market affects both economic growth and renewable energy consumption, it can serve as a stimulus for using renewable energy and achieving sustainable development. Economic policymakers can increase renewable energy consumption by better understanding the nuances of the effects of stock market value and economic growth on each group of renewable energy and use this knowledge to facilitate the development of the applicable renewable energies for the improvement and spread of clean air.中文证券市场发展和经济增长的关系伊朗可再生能源消费Seyedeh Razmi，Bahareh Bajgiran等摘要本文研究了伊朗两类可再生能源消耗（水电，风能，太阳能和核能总量以及可燃可再生和废物总量）与证券市场价值和经济增长之间的关系。

文献出处: Fernandez P. The company valuation based on the economic value added (EV A) [J]. European Journal of Business and Management, 2015, 5(3): 98-109.原文The company valuation based on the economic value added (EV A)Fernandez PAbstractThe traditional performance indicators without considering equity capital cost inherent deficiency Limit, can't measure the value of the new creation, cannot accurately reflect the change of shareholder wealth, unable to assess the real value of the enterprise, can make a scientific evaluation of value-added performance appraisal system is particularly urgent. Stemstewart consulting firm founded by the United States EV A (Economic Value Added, EV A) Value management performance evaluation method, overcome the deficiency of the traditional performance indicators, including the equity capital cost will be deducted from the calculation, the full cost of debt capital cost, expenses, reflecting the company in a certain period to create Value for shareholders. After promotion and application of the discount valuation model based on EV A and traditional derivative EV A value evaluation model arises at the historic moment, made from the perspective of shareholder wealth growth assessment of enterprise value to become a reality, and achieved remarkable achievement in some famous enterprises in the west.Keywords: Value of the company; Value of the investment; Economic value added (EV A); Value evaluation1 IntroductionDue to the generalization of listed companies, the mutual fusion strategy theory and financial theory, and corporate reliance on monetary market and capital market, forcing management is undergoing a revolution, which closely around the center, "value" to create more wealth for shareholders, enterprise management into on the basis of value, in order to realize the enterprise value maximization as the objective point of view is becoming more and more widely recognized. From the aspect of shareholders' equity, shareholders' wealth can be defined as the product of stockquantity and stock price, shareholder value is an important part of enterprise value, shareholder value will cause the increase or decrease of the enterprise value, increase or decrease of shareholders' wealth maximization is equal to the enterprise value maximization, realizes the shareholder wealth maximization is maximize the enterprise value. According to effective capital market theory, in strong type of capital market, decided to stock value, enterprise value and stock value decided to stock prices or stock prices always fluctuating around the value, therefore, the enterprise value determines the enterprise's share price, namely the enterprise market value. For investors, when the stock price is higher than the value, investors can sell stocks, make its prices tend to value; similarly, when the stock price is lower than the value, investors can buy shares, make its prices tend to value. For managers, whether to create value for the enterprise, can be tested in the market, the value was temporarily undervalued stocks have performance support, found later by the market, prices will go hand in hand with the value of the company. Obviously, how to accurately determine the true value of a company, the relationship between the market price of the value of the company and the company have become an enterprise owners, managers, and venture capitalists primary focus. Classic theory of enterprise value is pointed out that the enterprise value is equal to the invested capital and future new discount the value of the sum, from a wider field of vision about the enterprise value is the new value of the sum of the discount. This requires establishing scientific evaluation of value and value-added performance appraisal system, to measure the company's performance indicators must be able to reflect the company to create value for shareholders, standing in the perspective of shareholders to redefine the "profits”. Equity capital is the cost, obviously, the company to create value for shareholders should be minus all the costs include the cost of equity capital, relief is reasonable.2 Literature reviewIn the early 1920 s, American general motors company will introduce the EV A thought the company management, then once forgotten. In the 1980s, consulting company (Stemtewart&Co.) reintroduced to the ideas of the value assessment and company in the field of management, put forward the economic value added (EV A)index, to evaluate a firm's ability to create shareholder wealth. The Real Key To Creating Wealth (AIEhrbar, 1998), and other comprehensive expounds The theoretical value of EV A and in some companies use The model of case, think that EV A is a revolution of modern company management, performance evaluation is The correct way. Belmett Stewart found that EV A is a useful management tool; it has been internationally recognized as a corporate governance standards. EV A is a integrated analysis framework of financial management and incentive compensation of important indicators. EV A by providing such a framework that can reconfigure resources for the company, customers, employees, shareholders and managers to create lasting value. Tullv (1993) suggested that EV A as "the most popular financial indicators", points out that there are three ways to improve EV A: first, under the condition of without increasing capital gain more profit. Secondly, use less capital. Third, the capital invested in high return projects. Byme (1996) using regression model is examined and EV A and market value net operating profit after tax (NORAI,) the relationship between, when considering EV A and market value changes, the change of EV A explained 55% of the market value change. Chenand Dodd (1997) studied the accounting index (earnings per share, return on assets and equity yield) and residual income, as well as a variety of different and related to EV A index in the ability to explain stock returns, results show that the EV A index in explaining stock returns than other accounting index has better performance. Discussion in the calculation of the added value of economic indicators, whether need to adjust accounting course treatment is a bigger one argument EV A index research topic. Such as Biddle at (1997), the results show that the ability of the interpretation of the added value of economic indicators to 41.4% before the adjustment, and adjusted to explain ability of around 41.5%.Practice compromise methods used at present, only adjust some important projects. To adjust EV A calculation program of study (schouten, consultancy, concluded that too much adjustment not only takes much cost but also not conducive to the widespread use of EV A. Fortune magazine (Fortune) more to increase the economic value as the key of "wealth", and since 1993, reported by stemstewart&Co. 1000 large enterprises economic increase value. Giant Druckermanagement (Pcter Drucker) is also in the Harvard management review in 1995, said: "in the present various kinds of factors to measure the overall production method, EV A reflects all aspects of value management."3 Enterprise valueWith understanding of enterprise management goal of optimization, the understanding has been basically consistent, namely around the value maximization goal, according to the change in the environment, science and configuration of internal and external resources, enhance the initiative of the organization and strain capacity, and ultimately create more wealth for investors. Now popular value investment idea is a key concept based on the enterprise value. This article recommended investors to focus on and study the intrinsic value of listed companies, to evaluate the operation of listed companies, which have an objective understanding to the enterprise performance. Therefore, enterprise value theory of historical evolution and the connotation of enterprise value, is the first thing we need to know and clarify. In fact, the emergence of the theory of enterprise value is not only the strategic goal of enterprise and decision-making on the basis of the standard, and unified the short-term profits and enterprise long-term development and the relationship between the shareholders overall revenue, in order to promote the sustained and healthy development of enterprises, and prompted investors to scientific and rational investment.3.1 The various forms of the value of the companyThe value of the company is a company as a study object, is the enterprise characteristics, functions meet the demand of users, the relationship between the enterprise value of subjective color, clearly define the connotation of the value of the company to become the starting point of value evaluation research. The same enterprise will be due to the different main body needs, preferences and judgment, will present a different assessment. In order to clarify the concept, the different forms of enterprise value, book value, fair market value, intrinsic value and market value compares and analyses the several forms of the introduction of this paper studies the connotation of the value of the company.(l) The book valueThe book value of the company (Book Value) is the accounting value of the balance sheet reveals. With the company's books Value to represent the company is based on the assumption, that is, the value of a company is all investors (including creditors and shareholders) for the company's assets the value of the claim. Company's book value in accordance with the requirements of objectivity and caution, measured on the basis of historical cost accounting value. First of all, because is based on the historical cost valuation of assets in the financial report, m unchanged for a long time, ignoring inflation, factors such as technology innovation, make the book value over time, increasingly deviated from its true value, and management and investors the relevance of information needed. Second, the balance sheet reflect the assets of the company is formed by past transactions and events, from the point of view of investment, how much more attention in the future to create profits, that is the essential attribute of assets. Finally, due to the accountant processing limits, many have important value of the non-monetary information cannot be reflected, but also because there is no deduction of equity capital cost, cannot reflect the investment risk, thus greatly reduced the usefulness of the book value. Rarely used alone, in fact, the book value assessment, but investors can take advantage of the book value and the reference of other factors to make a rough estimate, the enterprise value of assets income function make basic judgment.(2) The fair market valueAccording to the international accounting standards and international standards set by the assessment criteria committee, from the fairness of market transaction and the point of trading, the fair value refers to the buyers and sellers on the basis of fully understand the relevant information, in the absence of any pressure to trading, the price of this definition is based on the visible strict business market, capital market hypothesis. Compared to traditional accounting historical cost measurement attribute, fair value reflects the present value, its essence is a kind of based on the evaluation of market information, the value that is associated with the current situation of enterprise management, is the market rather than other subjects for the cognizance of the valueof assets and liabilities, therefore appraiser and transaction both sides emphasizes a concept.(3) The intrinsic valueThe company's intrinsic value refers to the company for the foreseeable future the present value of the expected to produce revenue. Compared with other value idea, the company's intrinsic value is existed in the enterprise internal essential growth ability, profit ability, belongs to a kind of objective nature of enterprises, but the intrinsic value is the objective evaluation and subjective, mainly through the number and distribution on the future earnings of scientific prediction, reasonable choice of discount rate discount, these predictions are based on the company's operating situation, the management level, the trend of growth, profitability, etc., and consider some external predictive factors, therefore has the obvious subjective color. Even so, if the proper evaluation method, on the basis of abundant information, effectively within the company to carry on the investment decision to share, or deal with the problem related to the future and subjectivity, is still of great reference value.(4) The company's market valueFor listed companies, the company's Market value (Market, T-shirt) is a stock Market value and the sum of the debt markets, if the Market value as the company's real value must be strong and effective capital Market is the precondition of, that is, all of the public information included in stocks and bonds in the Market prices fully reflect. Value investment theory is the main representative of graham, Mr. Buffett pointed out that the stock price is influenced by various factors, such as the company's performance is one of important factors, poor performance in the stock market, the situation of the high price, and a strong capital market completely after all is a kind of ideal condition, especially in China, so the company's market value cannot effectively reflect the value of the company.3.2 The theory basis of enterprise value assessment(1) Capital budgeting evaluation theoryCompany value evaluation thoughts can be traced back to the beginning of the 20th century. Fisher's capital value. Fisher in 1906 in the capital and the income of thenature of the monograph comprehensively expatiate the relationship between capital and income and the source of value, laid the theoretical basis of modern company valuation. Fisher believes that people's monetary income, can show the wages, dividends, rent, interest and profit, etc. Sometimes money income is not the same as real income in people's lives (the actual consumption enjoy), depending on the currency income, and the comparison of actual consumption amount. Part of the monetary income is greater than the actual consumption if deposited in Banks or buy bonds to invest, it is converted into capital, and the future can be achieved when interest or investment income, so capital is the present value of future income present value, in other words, the value is the capitalization of the future income.(2) The value assessment theoryAmerican economist Annie and miller in view of existing problems of fisher, "uncertainty" pioneering into the enterprise value assessment theory system, and the enterprise value and the relationship between the capital structure of the classic expatiates that plagued the enterprise value evaluation theory of "mystery" capital structure have a certain degree of cracking, laid the foundation of modern theories of enterprise value evaluation. In the analysis of capital structure due to the "tax shield effect" has always been the debt as a core variables into consideration, make up the fisher capital value evaluation methods of enterprise existence as an investment defects, correct the company value maximization has nothing to do with the shareholders' equity and debt capital cost of error, is the "right" to reveal the real business situation of enterprises, and the average cost of capital for enterprise to carry on the correct definition, make the discount cash flow evaluation method has become the mainstream of enterprise value assessment methods, entered the practical stage. Their research in the history of enterprise value evaluation has played a role in inheriting and authentic.译文基于经济增加值(EV A)的公司价值评估Fernandez P摘要传统业绩指标由于没有考虑股本资本成本等固有缺限，不能衡量新创造的价值，不能准确反映股东财富的变化，无法评估企业的真实价值，使建立能对价值增值进行科学评价的业绩考核体系就显得尤为迫切。

中文3595字一、外文原文原文一：Performance Evaluation, Economic Value AddedAnd Managerial BehaviourFor the past two decades many countries started transforming their economies from traditional protected ones to those of more liberalized, globalized and market driven. This period has also seen the economies becoming more knowledge oriented and Human Resources started assuming more prominence in the growth of the economies and businesses posing a greater challenge for companies to acquire and retain talented workforce (especially at the strategic & managerial levels).The knowledge economy also started witnessing the rapid rise of the agency problem-conflict of interest between managers and owners. So it is very essential to align the interests of the mangers and shareholders or at least reduce the difference between them. In this regard Economic Value Added has been seen as better alternative to the stock price and traditional performance measures.While successful EV A stories in the west are quite encouraging, Corporate India is slowly catching up the EV A adoption. Although not a panacea, EV A based compensation plans will drive managers employ a firm‟s assets more productively and EV A should help reduce the difference in the interests of the managers and shareholders, if not perfectly align them.1. IntroductionFor the past two decades many countries started transforming their economies from traditional protected ones to those of more liberalized, globalised and market driven . This period has also seen the economies becoming more knowledge oriented and Human Resources started assuming more prominence in the growth of the economies and businesses. But this has also posed a greater challenge for companies to acquire and retain talented workforce (especially at the strategic & manageriallevels). The knowledge economy also started witnessing the rapid rise of the agency problem- conflict of interest between managers and owners. The managers – in their role as the agents–are expected to act in the best interests of the shareholders (principals). Managers will act in shareholders‟ interests only if they have right incentives. So it is very essential to align the interests of the mangers and shareholders or at least reduce the difference between them.So we need a measure that on one hand rightly measures the managerial performance so that he managers – with talent and greater mobility- can be suitably compensated (and hence retained) and on the other aligns the interests of the mangers and shareholders.For some time now Stock Price was thought to be an ideal measure achieving the above objectives. However stock price has many limitations.We shall discuss the pitfalls of stock price as a performance measure before evaluating some of the traditional performance measures and then introduce Economic Value Added as the right measure of managerial performance.2. Traditional Measures of Managerial PerformanceShareholders want the maximization of stock price (firm value). So can we measure the performance of a manager directly as reflected by the stock price-Reward managers when stock price goes up and punish them if stock prices behave otherwise? This approach has a major limitation. …Stock pri ce is driven by so many factors that escape from the control of managers, making it an inefficient measure of the true influence of the mangers on firm‟s value. …Changes in stock price-in the short run at least – are not always accurate gauze of management performance due to the presence of randomness and noise‟ (Kang et al, 2002). Tying t op management compensation to stock prices raises another difficult issue. The market value of a company‟s shares reflects investors‟ expectations. The stockholder return depends on how well the company performs relative to expectations‟. Suppose a company announces the appointment of an outstanding new manager. The stock price leaps up in anticipation of improved performance. Henceforth, even if the new manager delivers exactly the good performance that investors expected, the stock will earn only a normal averagerate of return. In this case a compensation scheme linked to the stock return would fail to recognize the manager‟s special contribution.An ideal performance measure should ensure that the managers would bear all the consequences of their own actions, but are not exposed to the fluctuations over which they have no control. In search of such a metric–traditionally-companies are used to capture managerial performance and reward them through the operation based measures like Profits, EPS, ROCE and ROE. However these measures are not free from limitations.An appropriate performance measure should assess how managerial actions affect the firm value. For this to happen the performance measure must incorporate at least three things (Irala, 2005).a. the amount of capital investedb. the return earned on the capital andc. cost of capital (WACC) – reflecting the risk adjusted required rate of returnIs there any measure that includes returns, capital employed and the cost of capital employed in its computation?The Stern Stewart & company, a New York City based consulting firm answers this question positively and introduces its Economic Value Added (EV A).3. What is Economic Value Added?EV A is the Adjusted Net Operating Tax After Tax (ANOPAT) for a period minus the capital charge (the rupee cost of capital) of the investment over that period.EV A can be expressed asEV A = Adjusted Net Operating Profit After Taxes (ANOPAT) - Capital CostWhereANOPAT = Capital Employed (CE)*ROCE (as ROCE = EBIT (1-T) / CE)Capital Cost = WACCX Capital Employed (CE)ThusEV A = Capital Employed (CE) *ROCE - WACC * Capital EmployedEV A = (ROCE - WACC) Capita l EmployedCapital is generally measured by book value.WACC is the weighted Average of cost of Equity (generally measured by CAPM) and cost of Debt.4. EV A as a performance measureIf managers are told that their performance is measured by EV A and compensation is liked to that, they would try to improve EV A by doing one or more of the following.A. Improve returns with the existing CapitalB. Employ Capital productivelyC. Reduce the capital costWhen managers do one or more of the above the value of the firm increases. So improving EV A theoretically improves the value of the firm and hence is a good measure of managerial performance.Whether they are contemplating entering new markets, setting product prices, adding new service lines, or making an acquisition, managers need a way to value the alternatives and choose the ones that will produce highest value to the firm. Cash flow analysis can help them to do that, but EV A can help them more (Bhalla, 2004).5. EV A and the Market Value Added (MV A)As noted earlier, the major attraction with EV A is that it is linked to the value of the firm and hence capable of signaling the value creation or otherwise of it.It is not too uncommon that the Market Value of a firm (Market value of Debt and Market value of Equity) either exceeds or falls short of its Book Value. The difference is the Market Value Added (lost). MV A can be arrived at by discounting back the Future EV As.MV A = Future EV As discounted backMarket Value of the firm = Book Value of the firm + MV Aand with simplifying assumption that market and book value of debt are equal, Market Value of Equity = Book Value of Equity + Market Value AddedThe Market Value of equity exceeds its Book value when the MV A is positive and in this case the Market Value of the equity is said to be at a premium. On the other hand it will be at a discount when MV A is negative.The MV A equals the Present Value of future EV As (Pablo Fernandez, 2003). Exhibit 1 and Exhibit 2 capture the link between Market Value, EV A and MV A 32123=+++1EVA EVA EVA （1+K ）（1+K ）（1+K ）Exhibit 1. The relations hip between MV A and EV Awhen the market value of the firm is more than its book value 32123=+++1-EVA -EVA -EVA （1+K ）（1+K ）（1+K ）Exhibit 2. The relations hip between MV A and EV Awhen the market value of the firm is less than its book value6. EV A adoption in IndiaCorporate India is slowly catching up. There had been a beginning with several companie s like Godrej, TCS, Marico, Dr. Reddy‟ s , Infosys, etc, adopting EV A in for different purposes.The EV A is closely related to NPV . …The Net Present Value of the pro ject is the present value of the economic value added by that project over its lif e‟ (Damodaran, 2002).Godrej Soaps group of six companies is one of the early adopters of EV A. Godrej had a multi-step variable bonus plan, where three levels of targets were outlined. A salesperson who had reached level I would never aspire to do more unless he was sure to touch level II, because he would not get any additional bonus for being midway. It would be more beneficial for him to report it in the next financial years' sales. The company's figures suffered as a result. There was clearly gap in communicationbetween the management and the employees. “A measure was needed that would align the interests of the employee, the company and the shareholder”. Godrej implemented EV A based incentive scheme. Four out of the six companies have out performed on stretch targets in just one year and most employees made huge bonusand acquisitions must have a justification in terms of shareholder value.Dr Reddy‟s La boratories does not use EV A as a measuring device to reward performance. However, it uses EV A as a qualifying criterion for granting performance-based rewards such as variable pay, performance bonuses and stock options (Jagannathan, 2004).Exhibit 3 describes the use of EV A at select Indian companies7. EV A & Managerial BehaviourAt the Godrej group, the entire business planning process is driven by EV A which will be applicable to about 2,500 employees. "EV A will be the main financial parameter by which we measure our performance. It will be also used in all capital expenditure decisions including acquisitions. The objective is to make all employees think like owners which would lead to an entrepreneurial culture this should be strongly supported by an open-ended variable remuneration scheme. This plan provides design flexibility, ensures alignment between employees and shareholders, and significant motivation can be achieved with reasonable retention risk and shareholder cost .Exhibit 3. The Use of EV A at Select Indian companies Tejpavan Gandhok, managing director of Stern Stewart India argues “If you seek to maximize EV A in the long run. People will be much more bottomline conscious - andconscious about sustainable results - because their own in centives are tied to getting a part of the action. The real benefit from EV A comes from making it a way of life inside the company. Essentially, the comparison between EV A and ESOPs is in terms of their relative effectiveness in inducing the desired managerial behaviour. In small start-ups, employees would be more keen to be rewarded by ESOPs. In large and diversified organisations I suspect EV A would be preferred by employees. (Jagannathan,2004).At TCS, about 1,000 employees have left in the first quarter 2004-05 financial year. This, according to sources in the company, is a result of the salary model based on the economic value-added (EV A) that was rolled out two years ago. Those exiting, they maintain, are primarily the non-performers. The EV A model –involving assessment, retraining and exit discussions – moves on a two-year cycle and the last quarter was the first one when its impact kicked in. Under a new five-tier appraisal system, a large percentage of those who have left were classified as non-performers. They were given low rankings for the second year in a row and failed to show signs of improvement despite undergoing a mentorship program me. Sources in TCS, however, said it was a conscious move by the company to enhance result-orientation among its employees. Accor ding to the new EVA-based system, every employee‟s salary has a fixed and a variable component. The variable component of the pay takes into account the performance of the individual and the company (Sinha, 2005) .8. The EV A, MV A and firm value: Empirical EvidenceWhile J oel stern(2001) argues …EV A pro vides a signal to the investors that this management is more likely to achieve the expected return on book capital employed, and might warrant higher price to earnings ratios be cause they are likely to engage in less potential waste‟, Empirical studies have outlined mixed findings-some of them diametrically opposite.‘There is only limited sup port for Stewart‟s contention that the adoption of EV A is associated with greater increase in MV A‟ (Linda 2000/2001).‘Improving EV A performance is associated with a higher stock return. However the association of EV A with stock return is not as strong as suggested in anecdotal EV A stories‟ (Chen and Dodd 1997).‘There is no indication what so ever that EVA is conveying any statistically significant signals different from the traditional performance indicators‟ (Malhotra, 2001).‘EV A is the single largest and most consistent variable which had a decisive role in accounting fro changes in MV A‟ (B hatnagar and Sekhar, 2001).9. ConclusionWhile successful EV A stories in the west are quite encouraging, empirical research is not sufficient to establish the claim of EV A as a better measure as well there is not much research to prove it otherwise.Corporate India is slowly catching up with few early adopters and Business Press throwing more light on the subject.Although not a panacea, EV A should help reduce the difference in the interests of the managers and shareholders, if not perfectly align them.Source: Dr. Lokanandha Reddy Irala. Raghunatha Reddy, 2006. Performance Evaluation,Economic Value Added and Managerial Behavior.PES Business Review, 1, pp.1-6.二、翻译文章译文一：绩效评估、经济增加值和管理行为在过去的20年里，许多国家开始转变模式，从传统经济向那些更加自由化、全球化和市场推动的方向转变。

证券市场发展与经济增长外文文献翻译中英文2020英文The relationship of renewable energy consumption to stock marketdevelopment and economic growth in IranSeyedeh Razmi，Bahareh Bajgiran，etcAbstractThis paper investigates the relationship of two types of renewable energy consumption (total hydropower, wind, solar and nuclear energies, and total combustible renewable and waste) to stock market value and economic growth in Iran. An autoregressive distributive lag (ARDL) model was used for data from 1990 to 2014 and results show that stock market value affects both groups of renewable energies in the long run. Growth rate significantly affects total hydropower, wind, solar, and nuclear energies in both the short and long run, although it is only significant in the short run for combustible renewable and waste energies. Neither type of renewable energy consumption affects growth in either the short or long run.Keywords：Renewable energy consumption，Stock market，Growth，ARDLSustainable development, as one of the main goals of every economy, encourages policymakers to use energy sources that emit the fewest pollutants to the environment. Today, renewable energy resources havebecome increasingly more important due to the fact that they have fewer negative impacts on the environment than other sources of energies and the growing limitations of fossil fuels. Most developed countries that are in agreement with the International Atomic Energy Agency and the Kyoto Protocol have established a framework to encourage greater usage of renewable energy sources Maji. Consequently, countries that are rich in non-renewable energies should consider ways to offset the economic slowdown that would be caused due to the loss of demand from developed countries. Apart from environmental issues, substituting domestic renewable energies also protects countries against external economic crises. As countries reduce fuel imports, their economies become less vulnerable to external crises. The importance of economic growth as the main objective of all economies has led a lot of studies towards finding the impact of renewable energies on economic growth. For example, one study using the ARDL method discovered that renewable energy and economic growth have a negative relationship in the long run in Nigeria, although an insignificant relationship exists in the short run. A negative impact of renewable energy on economic growth was also found in Turkey, South Africa, and Mexico by Ocal and Aslan. However, Destek found a positive relationship between the two variables was discovered for India. Aïssa et al tried to discover the relationship among renewable energy, output, and trade by using panel cointegrationof 11 African countries. They did not find any causality between renewable energy with output and trade in the short run. However, in the long run, Jebli and Youssef discovered the impact of renewable energy on output.Apergis and Payne employed panel cointegration for investigating the casual relationship between renewable energy consumption and economic growth for OECD countries. They found bidirectional causality between variables both in the short and long run. Similar results were discovered for Central American countries by Apergis and Payne. Using panel data, Chang et al found bidirectional causality between economic growth and renewable energy for G7 countries. However, these results were not approved for individual countries. Tugcu et al also discovered similar results for G7 countries. Using the panel cointegration method, Pao et al investigated the causal effect of clean and non-clean energies on economic growth for Mexico, Indonesia, South Korea, and Turkey. They found one-way causality running from renewable energy to economic growth in the long-run and two-way causality in short-run.Apart from economic growth, financial market development indexes are among the variables of interest to economists in energy studies. Financial market development can affect energy demand by influencing economic growth as well as reducing households’ constraints. Financial markets affect economic growth by transferring funds, determiningcapital prices, facilitating transactions, as well as distributing risk management. Facilitating consumer lending is another impact of financial markets on energy consumption, as easier access to financing for energy purchases increases consumer demand for energy. In other words, financial market development may increase energy consumption by reducing financial risk and lending costs and increasing access to financial investments and advanced technologies. Financial market development can also reduce the risks to consumers and businesses and thereby become an important factor in generating wealth in the economy. Therefore, the existence of financial market development is considered as a reliable lever for consumers and businesses which increases economic activity and energy demand.Kakar et al considered the relationship between financial market development, economic growth, and energy consumption in Pakistan in the 1980s. Using Johansen cointegration and Granger causality, the results showed the long-run effects of the financial market development on energy consumption, however its impact in the short run was negligible. Several studies have confirmed the relationship between financial development, energy consumption and economic growth. Stock market developments also play an important role in allocating funds for clean energy projects. Sadorsky stated that stock market developments would increase the demand for energy in emerging economies, whileChang indicated that the development of market capitalism in emerging countries would stimulate investment and energy consumption. This study investigates the relationship between renewable energy consumption, the stock market value,1 and GDP growth in Iran. It must be noted that, to the best knowledge of the authors, there have not been any studies on financial market development and renewable energies thus far; therefore, this research has referred to studies on total energy consumption and financial market development.Renewable energies can play an important role in reducing emissions of pollutants, such as carbon dioxide and other greenhouse gases. Features such as environmental compatibility, fewer pollutive effects, renewability, and global reliability have led these types of energies to play an important role in the world's energy supply system on a day-to-day basis. Nowadays, Iran is suffering from air pollution, and the impact on public health is a well-known problem. Therefore, consuming renewable energies can be effective in both achieving clean air and increasing the overall health and well-being of the society. According to recent changes in Iran's energy consumption laws, governmental units such as the Ministry of Energy and the Ministry of Oil have been obliged to support clean energy consumption.Iran has many capacities in which to use hydro, wind, solar and other kinds of renewable energies due to its geographic environment.Despite its high potential for employing renewable resources, renewable energies have not yet been properly exploited. Renewable energy consumption in Iran is still less than 4% of total energy consumption. Therefore, Iran needs to devote particular attention to the various aspects of renewable energies to maintain its position as an energy supplier. Regarding foreign sanctions that have reduced the speed of foreign investment in non-renewable energy, the Iranian government also needs to increase its support to the private sector to attract more investment in renewable energies. This research helps policymakers in Iran and other countries meet their goals for using renewable energies by investigating the relationships of the three aforementioned variables.This study differs from other research on this issue as most papers in this field study economic growth, non-renewable energy consumption, and pollution (CO2) by panel data models. For our research objective, we make three key contributions. First, financial markets, especially the stock market, can help developing industries to raise and circulate capital within the broader economic system. While many studies have examined the relationship between financial development and economic growth with non-renewable energies, there is a gap in research pertaining to renewable energies. The study covers this gap by focusing on of renewable energy that have largely been ignored in prior research. Second, in contrast to the studies applying cross-country panel causality testing,especially in developed countries, we apply an ARDL model as a robust methodology for Iran's economy. Third, studies on renewable energies typically use one type of renewable energy source, while this study compares two groups of renewable energies: total hydropower, wind, solar, and nuclear energies and combustible renewable and waste energies. We examine the effect of economic growth on the two types of renewable energy consumption and conversely, the effect of the two types of renewable energy consumption on economic growth. This type of analysis has the potential to support future policy recommendations.For our estimation model we have carried out the following steps. First, after a thorough review of theoretical and empirical studies, we have selected our models. Next, we have verified the unit roots and integration tests for long-run relationships. Subsequently, we have applied two models for each of the long-run and short-run analyses. In each model, the dependent variables are: economic growth and renewable energy type. Finally, we have conducted diagnostic tests to confirm the reliability of the results.This paper examines the relationship between two types of renewable energy consumption, including consumption of hydro, solar, wind and nuclear energies as well as that of combustible renewables and waste energies, stock market value, and economic growth in Iran over the period 1990–2014 using the ARDL method. Such a study on Iran is verynecessary, as studies in this area are rare, and only small steps have been taken towards using renewable energies. The use of renewable energy in Iran is still less than 4% of the total energy consumption in the country. Therefore, more robust studies must be done regarding renewable energies. Results show the existence of short- and long-run relationships between variables in two models where the dependent variables are re (consumption of water, solar, wind and nuclear energies), gr (economic growth rate), and rec (consumption of combustible renewable and waste energies).The coefficient of st (stock market value) is insignificant for both re and rec as dependent variables in the short run, meaning that in the short run, financial markets have no effect on renewable energy consumption; however, it is positively significant in the long run for both groups. Therefore, the stock market value is an important positive factor affecting renewable energies in the long run. Growth rate significantly affects re in both the short and long run, although it is only significant in the short run for rec as a dependent variable. Neither type of renewable energy affects growth in the short run and long run. This result is similar to Dogan that found little effect of renewable energy consumption on economic growth in Turkey. Destek found negative effect of renewable energy consumption for South Africa and Mexico. However, Adams et al discovered positive effect of renewable energy consumption on economicgrowth in 30 Sub-Saharan African (SSA) countries.By examining the relationship among two groups of renewable energy consumption, stock market value, and economic growth, the results of this study highlight a few points for policymakers in Iran who are looking for ways to improve public health by using clean energies. First, stock market development in Iran has led to an increase in renewable energy consumption for total hydropower, wind, solar, and nuclear energies, while has not affected the consumption of combustible renewable and waste energies. The positive effect of stock market value on long-run economic growth shows that stock market development can increase renewable energy consumption in the long run. Second, economic growth can also lead to an increase in renewable energy consumption of the first group so policies towards increasing economic growth also lead to renewable energy consumption of first group. Third, given Iran's recent investments in the development and use of renewable energy technologies, the results of this research show that the country should continue to develop its renewable energy infrastructure in order to reap the full benefits.Responses to the following questions can be a guide for policymakers to achieve sustainable development and to increase the health and well-being of the society.•Do renewable energies have a positive effect on economic growth?•Does the value of the stock market have a positive effect on economic growth?•Does the value of the stock market have a positive effect on renewable energy?If the value of the stock market affects both economic growth and renewable energy consumption, it can serve as a stimulus for using renewable energy and achieving sustainable development. Economic policymakers can increase renewable energy consumption by better understanding the nuances of the effects of stock market value and economic growth on each group of renewable energy and use this knowledge to facilitate the development of the applicable renewable energies for the improvement and spread of clean air.中文证券市场发展和经济增长的关系伊朗可再生能源消费Seyedeh Razmi，Bahareh Bajgiran等摘要本文研究了伊朗两类可再生能源消耗（水电，风能，太阳能和核能总量以及可燃可再生和废物总量）与证券市场价值和经济增长之间的关系。

中文2875字原文二：Economic Value Added - A General Perspective This paper explains the concept of Economic Value Added (EV A) that is gaining popularity in India. The paper examines whether EV A is a superior performance measure both for corporate reporting and for internal governance. It relied on empirical studies in U.S.A. and other advance economies. It concluded that though EV A does not provide additional information to investors, it can be adapted as a corporate philosophy for motivating and educating employees to differentiate between value creating and value destructing activities. This would lead to direct all efforts in creating shareholder value. The paper brings to attention the dangerous trend of reporting EV A casually that might mislead investors.ECONOMIC V ALUE ADDED – the conceptEV A is the most misunderstood term among the practitioners of corporate finance. The proponents of EV A are presenting it as the wonder drug of the millennium in overcoming all corporate ills at one stroke and ultimately help in increasing the wealth of the shareholder, which is synonymous with the maximization of the firm value. The attractiveness of the EV A lies in its use of cash flow and cost of capital that are determinant of the value of the firm.In the process, EV A is being bandied about with utmost impunity by all and sundry, which includes the popular press. The academic world in its turn has come up with various empirical studies which either supports the superiority of EV A or questions the claim of its proponents. Currently the empirical evidence is split almost half way.EV A is nothing but a new version of the age-old residual income concept recognized by economists since the 1770's. Both EV A and …residual income‟ concepts are based on the principle that a firm creates wealth for its owners only if it generates surplus over the cost of the total invested capital. So what is new? Perhaps EV A could bring back the lost focus on …economic surplus‟ from t he current emphasis onaccounting profit. In a lighter vein it can be said that in an era where commercial sponsorship is the ticket to the popularity of even the concept of god, the concept of residual income has not found a good sponsor until Stern Stewart and Company has adopted it and relaunched it with a brand new name of EV A.Technically speaking EV A is nothing but the residual income after factoring the cost of capital into net operating profit after tax. But this is only the tip of the iceberg as will be seen in the next few sections. The paper examines EV A both as a measure of overall performance and a management philosophy that helps to improve the productivity of resources.EV A= (ROI- WACC) x CAPITAL EMPLOYEDCapital being used in EV A calculation is not the book capital, capital is defined as an approximation of the economic book value of all cash invested in going-concern business activities, capital is essentially a company‟s net assets (total assets less non-interest-bearing current liabilities), but with three adjustments:Marketable securities and construction in progress are subtracted.The present value of non capitalized leases is added to net property, plant, and equipment.Certain equity equivalent reserves are added to assets:Bad debt reserve is added to receivables.LIFO reserve is added to inventories.The cumulative amortization of goodwill is added back to goodwill.R&D expense is capitalized as a long-term asset and smoothly depreciated over 5 years (a period chosen to approximate the economic life typical of an investment in R&D).Cumulative unusual losses (gains) after taxes are considered to be a long-term investment.A firm can motivate its managers to direct their effort towards maximizing the value of the firm only by, first measuring the firm value correctly and secondly by providing incentives to managers to create value. Both are interdependent and they complement each other. Therefore this paper examines the EV A concept from twoperspectives, EV A as a performance measure and EV A as a corporate philosophy.We shall examine EV A as a performance measure to assess whether it conveys any additional information to investors over conventional performance measures. In other words, whether information on EV A leads to better decision by investors.Examining EV A as a corporate philosophy we intend to look at the efficacy of EV A when implemented at every level of managerial decision making process to encourage managers to deploy resources only on value enhancing activities and to align the interests of shareholders with managers. This involves two things, one is linking managerial compensation package with EV A and second is to inculcate the culture of evaluating every action from the viewpoint that it should generate EV A. The ultimate outcome should be enhancement in the firm-value measured by the capital market. When EV A is used as a management philosophy, it results in the enhancement of productivity by continuously focusing on return vis-à-vis cost of capital. However as market discounts expected long term performance of the firm, any compensation that motivates enhancement of short term EV A, may not maximize the firm value.However with EV A culture, the firm as a whole focuses on the economic surplus and that definitely improves value enhancement process. Of course, this can be achieved even by implementing the other practices but the simplicity of EV A in communicating the very fundamental principle, that generation of surplus over cost of capital can only enhance the firm value, makes it a management technique superior to other planning and control techniques. We shall examine the appropriateness of this perception.EV A AS A PERFORMANCE MEASUREProponents of EV A argue that EV A is a superior measure as compared to other performance measures on four counts:1. it is nearer to the real cash flows of the business entity;2. it is easy to calculate and understand;3. it has a higher correlation to the market value of the firm and4. its application to employee compensation leads to the alignment of managerialinterests with those of the shareholders, thus minimizing the supposedly dysfunctional behavior of the management.The last two merits can be considered as a reflection of the first two. If EV A truly represents the real cash flows of a business entity and it is easy to calculate and understand, then it automatically follows that it should be closely related to the market valuation and it should minimize the dysfunctional behavior of the management when used as an incentive measure. In other words, close relation to market valuation and convergence of managerial interests with shareholders interests is a vindication of EV A as a superior metric.EV A as a performance measure looks into the efficacy of EV A both as an absolute measure in comparison with net income, residual income and similar measures as well as a ratio in relation with performance measures like ROE, ROA and Operating Profit Margin, which are commonly used by both managers and equity analysts alike. These measures are normally used internally by the management to evaluate employee performance, incentive calculation and investment decisions and externally by equity analysts to ascertain the performance and growth of the firm. Along with these measures valuation models like NPV, IRR, Payback period and Book rate of return are used both internally and externally by managers for investment decisions. The former measures are backward looking measures which take into account past and current performance and facilitates prediction of future performance, whereas latter measures are more forward looking and discount the expected future cash flow streams associated with a given investment or new investment to ascertain the economic viability of the same.EV A a superior performance measure?First let us look into the claim of EV A being superior than the conventional measures such as ROI, ROE and ROA, which are based on the accounting figures. Most of these measures give us the rate of return earned by the firm with respect to capital invested in the firm. The most important limitation of these measures are derived from limitations inherent in the measurement of accounting profit. As per current accounting practices, while historical-cost-based accounting measures arebeing used to carry most of the assets in the balance sheet, revenue and expenses (other than depreciation) are recognized in the profit and loss account at their current value. Therefore accounting rate of returns do not reflect the true return from an investment and tend to be biased downwards in the initial years and upwards in the latter years. Similarly as noted by Malkelainen (Esa Malkelainen, 1998), distortion occurs basically due to the historical cost and straight line depreciation schedule used by most businesses to value their assets. This leads to a bias in these measures due to the composition of assets of a firm at any given point in time. By composition he refers to the current nature of the assets, more current the assets are, the accounting rate of return is closer to the true rate of return. This distortion will not be significant if there is a continuous stream of investments in assets i.e. the value of the mix of assets is nearer to the current value of the assets. But the probability, that at any point of time, a firm should have such a composition of assets is rare, in most cases either the assets are old or relatively new. This precludes these accounting measures from being used to reach any meaningful conclusion regarding the true performance of the firm.The other important limitation of accounting measures is that they ignore the cost of equity and only consider the borrowing cost. As a result it ignores the risk inherent in the project and fails to highlight whether the return is commensurate with the risk of the underlying assets. This might result in selecting projects that produce attractive rate of return but destroys firm value because their cost of capital is higher than the benchmark return established by the management. On the other hand accounting measures encourage managers to select projects that will improve the current rate of return and to ignore projects even if their return is higher than their cost of capital. Selection of projects with returns higher than the current rate of return does not automatically increase shareholders‟ wealth. Taking up only those projects, which provide returns that are higher than the hurdle rate (cost of capital) results in increasing the wealth of the shareholder. Therefore use of ROE, ROA or similar accounting measures as the benchmark, might result in selection of those projects that though provide rate of return higher than the current rate of return destroys firm-value.Similarly use of these measures result in continuing with activities that destroys firm value until the rate of return falls below the benchmark rate of return.EV A proponents claim that because of these imperfections, the accounting based measures are not good proxies for value creation. Managerial compensation based on these measures does not encourage value enhancement actions by managers. Value enhancement and earnings are two different things and might be at cross-purposes because short-term performance might be improved at the cost of long term health of the firm. Activities involving enhancement of current earnings may be short term in nature, whereas any value enhancing activities should focus on long term well being of the firm. Avoidance of discretionary costs improves current performance while destroying value of the firm. Managers‟ f ocus on short-term performance will increase as long as their rewards are tied to the current performance over long-term value enhancement (Damodaran 1998, David Young 1999).ConclusionThe concept of EV A is based on the sound economic principle that firm value increases only if it is able to generate surplus over its cost of capital and therefore it is based on strong theoretical foundation. However its calculation involves significant subjectivity and this reduces its informative value. Moreover it fails to provide better signals to the capital market as compared to conventional accounting measures like ROI, however hard selling of EV A has contributed positively in highlighting the fundamental economic principle, long forgotten by managers. In India companies are using EV A internally as a performance measure for improving productivity that would lead to enhancement of shareholder value. However a dangerous trend has also set in, to use EV A casually for external reporting. This trend should be stalled as such reporting might mislead users of those reports.Source: Asish K Bhattacharyya & B.V.Phani,2004. “Economic value added –a general perspective”.Working Paper Series.pp.1-20.译文二：经济增加值---普通透视本文解释了在印度日渐流行的经济增加值（EVA）这个概念。

原文：Foundations of economic value addedThe EV A RevolutionIn a market-driven economy many panies will create wealth .Other firms however will undoubtedly destroy it. Discovering those economic factors that lead to wealth creation and destruction among panies is important to many constituencies, not the least of which is corporate officials and investment managers. For corporate managers, wealth creation is fundamental to the economic survival of the firm. Managers that fail (or refuse) to see the importance of this imperative in an open economy do so at the peril of the organization and their career.Finding the “best” panies and industries in marketplace is of primary importance to investment managers. With the proper financial tools, portfolio managers may be able to enhance their active performance over-and-above the returns available on similar risk indexed passive strategies. A new analytical tool called EV A is now assisting this wealth-discovery and pany-selection process .The innovative changes that this financial metric have spawned in the twin areas of corporate finance and investment management is the driving force behind what can be formerly called the “EV A revolution”.EV A in practiceThe analytical tool called EV A ,for Economic Value Added, was mercially developed in 1982 by the corporate advisory team of Joel Stern and G.·Bennett·Stewart Ⅲ.This financial metic gained early acceptance from the corporate munity because of its innovative way of looking at the firm’s real profitability ,unlike traditional measures of profit—such as EBIT ,EBITDA ,and net operating ine—EV A looks at the firm’s “residual profitability”, net of both the direct cost of debt capital and the indirect cost of equity capital. In this way ,EV A serves as a modern-day measure of corporate success because it is closely aligned with the shareholder wealth-maximization requirement.Large firms like Coca Coca ,Diagea ,Lilly(Eli) ,Guidant ,and SPX have usedEV A as a guide to creating economic value for their shareholders .Bonuses and in centive pay schemes at these firms have been built around the manager’s ability (or lack thereof) to generate positive EV A within the firm’s operating divisions .Positive payments accrue to managers having divisional operating profits that on balance exceed the releva nt “cost of capital”, while negative incentive payments may occur if the larger-term divisional operating profits fall short of the overall capital costs .Thus ,by a accounting for both the cost of debt and equity capital ,EV A gives managers the incentive to act like shareholders when making corporate investment decisions.EV A is also gaining popularity in the investment munity .The June 1996 conference on “Economic Value Added”at CS First Boston and the “roll out”of Goldman Sachs’ EV A researc h platform in May 1997 is testimony to this exciting development .Indeed , “buy side”investment firms like Global Asset Management and Oppenheimer Capital use EV A in their stock selection ,portfolio construction ,and risk control processes .Other large investment firms are taking a serious look ,and EV A is also making meaningful inroads in world of global performance analytics . Moreover ,recent empirical studies in the Journal Portfolio Management(among other finance and investment journals)shows that EV A is being advanced in both the academic and financial munities.Evolution of EV AThe evolution of economic profit—economic value added(EV A)—is a fascinating study with historical roots that can be traced back to the classical economist’s notion of “residual ine.”For instance ,consider the definition of economic profit made in 1890 by famous British economist ,Alfred Marshall , regrading the real meaning of a business owner’s profit: “What remains of his profits after deducting interest on his capital at the current rate may be called his earnings of undertaking or management.”Based on Marshall’s statement,it is evident that the economists’definition of profit—namely ,a residual view of ine or economic profit—is radically different from the accounting measures of profit in use today ,such as EBIT ,EBITDA ,or netoperating ine .This is, a key distinction between economic profit and accounting profit lies in the classical economists’notion that a pany is not truly profitable unless its revenue have covered the usual production and operating expenses of running a business ,and provided a normal return on the owners’invested capital .In a more fundamental sense ,this residual view of ine is really what today’s economic profit movement is really all about.While EV A is rooted in classical economic theory ,three pioneering 20th century American economists—Irving Fisher during the 1930s,and Nobel Laureates Franco Modigliani and Merton Miller in the late 1950s to early 1960s—expanded upon the fuller meaning of economic profit in a corporate valuation context .Irving Fisher established a fundamental link between a pany’s net present value(NPV)and its discounted stream of expected cash flows .In turn ,Modigliani and Miller showed that corporate investment decisions—as manifest in positive NPV decisions—are the primary driver of a firm’s enterprise value and stock price—as opposed to the firm’s capital structure mix of debt and equity securities.Basically ,the theory of economic value added rests on two principle assertions:(1) a pany is not truly profitable unless it earns a return on invested capital that exceeds the opportunity cost of capital and (2)that wealth is created when a firm’s managers make positive NPV investments decisions for the shareholders .What expand on these EV A tenets of wealth creation as we move forward in this book .For now ,Let’s look at operational definitions of EV A that have shaped the current economic profit movement as well as introduce the link between a pany’s economic profit and its market value added.Operational Definitions of EV AThere are two popular or operational ,ways of defining EV A——namely ,an “accounting”way and a “finance” .From an accounting perspective ,EV A is defined as the difference between the firm’s net operating prof it after tax(NOPAT)and its weighted-average dollar cost of capital .As a result ,EV A differs from traditional accounting measures of corporate profit including ,EBIT (earnings before interest and taxes),EBITDA(EBTT plus depreciation and amortization),net ine ,and even NOPATbecause it fully accounts for the firm’s overall capital costs .This analytical difference is important to the firm’s ow ners because the EV A metic is net of both the direct cost of debt capital and the indirect cost of equity capital——as reflected the shareholders’required return on mon stock.In this context , EV A can be expressed in more general terms as:EV A=NOPAT-$Cost of CapitalIn this expression, the firm’s dollar cost of capital is calculated by multiplying the percentage cost of capital by the amount of invested capital according to:$Cost of Capital= [%Cost of Capital/100]* Capital In turn, the percentage cost of capital is obtained by taking a “weighted average” of the firm’s after-tax cost of debt and equity capital as shown by:%Cost of Capital=[Debt weight * % After-tax debt cost+ Equity weight * %Cost ofequity]EV A: The Finance InterpretationFrom a finance perspective, EV A is defined in terms of how it relates to the firm’s “market value added.” In this context, MV A (or NP V) is equal to the present value of the firm’s expected future EV A. Additionally, since MV A is equal to the market value of the firm less the “book capital” employed in the business, it can easily be shown that EV A is related to the intrinsic value of the firm and its outstanding debt and equity securities. Stating these concepts in more formal terms yields the familiar value-based relationship between the firm’s “market value.MV A and EV A: Growth ConsiderationsThe basic EV A and MV A linkage outlined above can also be extended to a multiperiod framework. Without getting into plicated pricing details here, one can use a “constant growth” EV A model to show the pricing importance of both the firm’s near-term EV A outlook and its long-term EV A growth rate in determining overall corporate (or enterprise) valuation. In this “Gordon-like” model, the relationship between the firm’s MV A and its EV A outlook for the future is expressed as:MV A=EV A(1)/(COC-gEV A)In this expression, EV A(1) is the firm’s current EV A outloo k (one-year aheadforecast), gEV A is the firm’s assessed long-term EV A growth rate, and COC is the familial weighted cost of debt and equity capital.The constant-growth EV A model shows that the firm’s market value added (MV A) is positively related to its near-term EV A outlook, as measured by EV A(1), as well as the firm’s assessed long-term EV A growth rate, gEV A. As shown, the firm’s MV A is also negatively related to any unanticipated changes in the weighed-average cost of (debt and equity) capital, COC. However, in view of modern day capital structure principles (a la Miller-Modigliani), this “cost of capital” interpretation does not imply that the firm’s corporate debt policy has any meaningful impact on the valuation of the firm and its outstanding debt and equity shares.PREVIEW OF WEALTH CREATERSLet’s now take a preliminary look at the MV A and EV A relationship for major U.S. wealth creators and destroyers. The MV A and EV A characteristics for five large U.S. wealth creators—including General Electric, Cisco Systems, Microsoft Corporation, Wal-Mart Stores, and Merck—for the 11-year period covering 1990 to 2000 are shown in Exhibits1.2 and 1.3. These large capitalization panies were listed by Stern Stewart & Co. as the top-five U.S. wealth creators (based on MV A ranking) in their 2001 Performance Universe.Exhibit 1.2 shows that wealth creators like General Electric , Cisco Systems , and Merck have substantially positive MV A that grows rapidly over time . At year-end 2000,General Electric’s net present value was $426,616 million, while Cisco Systems and Merck were reporting MV A values of $272,131 and $203,689 million, respectively. During the 11-year period spanning 1990 to 2000, General Electric’s net present value was growing at a pound yearly rate of nearly 34%. Moreover, over the 11-year reporting period, Cisco’s MV A was actually growing at an annualized rate of 86%, while Merck was reporting a respectable average MV A growth rate of about 21%.Exhibit 1.2 also reveals that the MV A values for the top-five U.S. wealth creators declined mostly from year-end 1990 to 2000. For example, General Electric’s MV A declined by about $45,000 million (or $45 billion) while Cisco Systems and Wal-Marteach experienced MV A declines of around $76,000 million. Indeed, Microso ft’s MV A declined by a staggering $412,000 million –from $629,470 to $217,235 million –between 1999 and 2000. As with Cisco et al. , the MV A decline for Microsoft was due in part to the general slowdown in economic activity—especially in the technology and telemunication industries—and thus the precipitous decline in the U.S stock market mencing in the first half of 2000. Additionally, Microsoft’s sharp decline in MV A was due to serious legal challenges from petitors arising from its alleged “bundling” of s oftware with the Windows operating system.Exhibit1.3 shows the source of the positive net present value being generated by the five U.S. wealth creators shown in Exhibit1.2. Specifically, this exhibit reveals that wealth creators like General Electric, Microsoft, and Merck have substantially positive MV A because their EV A is both positive and growing at a substantial rate over time. At $5,943 million, General Electric’s 2000 EV A is not only positive, but it also grew by 25% over the 1990-2000 period. With MV A and EV A growth rates in the 20-30% range during this decade, the two exhibits suggest that General Electric’s net present value largely “tracked” the diversified conglomerate’s ever-rising “economic value added.” Likewise, Microsoft’s ten-year EV A growth rate, at 39%, seems to have provided the necessary fuel for its abnormal MVA growth rate, at 40%.Exhibit1.2 Market Value Added: Top-Five Wealth Creators in Performance Universe:1990-2000Exhibit 1.3 Economic Value Added: Top-Five Wealth Creators in Performance Universe:1990-2000Exhibit1.3 also shows that Cisco Systems had tremendous growth in its EV A up to 1998. During this period, the networking firm’s EV A grew from just $9 million in 1990 to $775 million in 1998. This represents an astonishing EVA growth rate of 90% that, in turn, is joined with Cisco’s MV A growth rate of 100%. On the other hand, Cisco’s EV A peaked at $775 million in 1998, then declined to $182 million in 1999, and actually turned negative in 2000, at -$365 million. Interestingly, Cisco was apparently overvalued in 1999 as its MV A peaked at $348,442 during that year in the presence of its falling EV A. Cisco continued its MV A decline in 2000 with the major sell off in technology stocks to end the year at $272,131 million. Thus, taken together, the MV A and EV A relationships shown in Exhibits1.2 and 1.3 are not only beneficial in describing the financial characteristics of wealth creators, but exhibits like these can be used to assist in the discovery of mispriced securities.Source: James Lawrence Grant, 20XX “Foundations of economic value added” .Wiley. pp.1-10.二、翻译文章译文：经济增加值的基本原理EV A革命在市场经济下，许多公司都会创造财富。

文献出处: Ailsa R. Activity-Based Costing based on economic value added [J] The Journal of International Economics, 2014, 22(6): 41-59原文Activity-Based Costing based on economic value addedAuthor: AilsaAbstractActivity-Based Costing, also called ABC cost method. In a traditional ABC cost method of cost analysis for the cost of capital takes up when neglected, which leads to the result of the cost accounting is not comprehensive, by the concept of economic value added to improve the activity-Based Costing, to the enterprise cost of capital in the process of cost management. In this paper, the connotation of activity-Based Costing, the flaws of the traditional method, with the added value of economic ideas to improve the activity-Based Costing, and the improved method of the framework, the application of improved after the activity-Based Costing of the company should do the preparatory steps and the new activity-Based Costing application of discussion and analysis.Key words: activity-Based Costing; Economic value added; Connotation; The defect; Framework1 The concept of cost methodThe basic foundation of activity-Based Costing is the theory of cost driver. According to the enterprise in the process of production and operation of resources consumption, assignments, and final output relationship, to analyze the occurrence of costs. In the activity-Based Costing "cost object consumption operations, operations consume resources" is the guiding ideology. Activity-Based Costing and the current cost calculation method, the main difference is that the allocation of manufacturing costs. Activity-Based Costing mainly center on the "homework".Through the homework cost measuring, confirmation and distribution for the product cost calculation.2 Defects of traditional activity-Based CostingAt present, or is the cost accounting management system are not perfect. Traditional cost accounting accounting is often directly using artificial man-hour for allocation of the company's manufacturing cost. But there are a lot of cost and artificial man-hour is out of proportion. Activity-Based Costing while the indirect costs incurred can be accurate to the distribution of the cost object. But considering the activity-Based Costing is only related to the "profit" business cost, however, the cost of the "balance sheet" to ignore. If that doesn't take into account the cost of project of the cost of capital of the problem, then it will lead to wrong decisions will be made to the managers of enterprises.3 Activity-Based Costing improvement based on economic value addedEconomic value added, hereinafter referred to as: EV A. The formulation of economic increase is by the Stern, and others. Economic value added is a new index of company performance evaluation. It in the company measured when considering the cost of investment capital, so as to create the value for the shareholder of the company. As a result, economic added value becomes the supplement of traditional company performance measure system. Only in the rate of return on investment is high, investors would like to see more money. If, in the future return on investment is very low, investors are likely to choose other investment opportunities for capital investment. This is called the "economic value added" of a basic idea. Economic added value of the basic idea of our company must to create value for the company's shareholders, the company's managers have to make the company can produce enough value to cover the cost of capital, investment if the company cost of capital is greater than the investment returns, will be to damage the interests of shareholders.In the activity-Based Costing only consider the cost management of the factors, neglect the cost of capital. And economic added value to consider the cost of capital this factor. If the activity-Based Costing can include the thought of economic added value, so the cost management and corporate performance evaluation system will be more comprehensive and perfect., therefore, to improve the traditional method, the most important is to get the cost of capital this factor is also incorporated into the activity-Based Costing, which used for operating cost and capital cost accounting, tocreate wealth for the company's shareholders. Traditional activity-Based Costing in the improved, not only to retain the essence, the cost of capital in into the company's performance evaluation system is use it as a special indicator.After improvement of activity-Based Costing to create shareholder value to the company's, so it will be a driving force of the company managers to value creation. After the new activity-Based Costing for application, the management of this company will be able to find the influencing factors of value creation. Thus can solve these influence factors, make the company's performance can be significantly improved.4 The framework of activity-Based Costing after improvementActivity-Based Costing after improving the "cost of capital", "indirect costs" and "direct costs", the three main costs additional to the specific cost object. In the management of cost, the cost of "direct" be directly traced to a particular object. With homework motivation to "indirect costs”. With economic added value to the cost of capital.The flow chart of the six economic relationship between entities and their contributions are shown out. Various economic entities is characterized by contributions to describe. Contribution of the same economic entity comprise the economic entities of the same class. To take an example with the cost object. Cost object as one economic entity. It has the potential to tangible, such as a customer or a product. But it may also be intangible, when it is invisible when it is a kind of service. After a company to analyze customer base to assess customer contribution rate, produced by the company because the customer is cost object, their contribution is the same, so they are defined as economic entities of the same class.In general, "the cost of capital", "indirect costs" and "direct costs" of the three cost type represented by the economic entity is different. “Cost" and "direct costs" is a direct link between the relationships. The "indirect costs" is an indirect be traced back to the object of "cost”. “Cost of capital" and "direct costs" and "indirect costs", "the cost of capital" only related to a particular project, such as investment risk. In addition to the "cost of capital", "indirect costs", "and direct costs" of the three types of costand customer, cost object, in the framework of activity-Based Costing after improvement and 6 types of economic entity. Is "homework”. With"homework" under the activity-Based Costing as a motivation for activity-Based Costing, can put the "indirect fees" back to the cost of the product.5 New activity-Based Costing in the application should do preparationActivity-Based Costing of improvement is mainly due to the traditional method on the cost of capital of neglect. So, the improved method is very applicable for capital intensive companies, especially those of the company cost of capital is very high. Application of the improved method, whether this method is suitable for use in the company have to be an analysis.First of all, to adopt improved after company must be activity-Based CostingThe company has implemented before operation cost method. Its production and operation process is according to the requirements of the management of the activity-Based Costing for improvement and management of the activity-Based CostingSeeking truth from facts.Second, to the company's cost of capital accounts for operating cost ratio to calculate. According to the research of relevant data show that if calculated ratio is quite high, such as: more than 0.10%.Then the company can consider with the improved after the activity-Based Costing.Finally, after the application of improved method also must want to obtain the company top leaders support. If after improvement of activity-Based Costing can't be accepted by the company top leaders, its application in the enterprise have to will be difficult to implement. Supported by the company top leader, the company also need to set up a team to engage in the application of this system.6 After improvement of activity-Based Costing application stepThe company's financial information collection. According to the company of "profit" and "balance sheet", can get what we need the company's financial information. “Income statement" can be used to estimate the cost of, "balance sheet", can be calculated for the cost of capital. Economic value added in it needs to becalculated for the company's accounting project and some financial indicators to make an adjustment. These after adjustment in the financial statements of the project should comment on it.The determination of main job. Through the enterprise to the consumption of resources, manufacturing investment capital and business processes to determine the company's main job.The company's operation cost. Homework after confirmed, will these jobs as an object. According to the operation of the consumption of resources, to summarize the "cost" of various assignments. And what happens to each homework "costs" are included in cost in the library.Identify cost drivers. According to the operation of the usage of the consumption of resources and capital, to determine the reason of the cost of capital and operating costs of moving.The cost of homework cost object is calculated. Once you determine costs of drivers, according to activity-Based Costing. Homework will be traced back to the cost of cost objects. It is necessary to consider when making the actual distribution company information in the "balance sheet”. With the added value of economic thought after improvement of activity-Based Costing, the evaluation of a comprehensive and scientific will be more favorable.The establishment of the operation cost of capital. A lot of homework to resources consumption, not only to the investment capital also has consumption. That is to say, actual cost of each activity is higher than the traditional method to calculate the cost. Therefore, the traditional method of cost of each activity is underestimated. With economic value added ideas to improve the activity-Based Costing, activity-Based Costing based on each job demand for capital, calculated the cost of capital in the homework, and it is included in the cost of the project.7 ConclusionsThrough the discussion of above, with the added value of economic ideas to improve the operation cost, the management of this company will be able to find the influencing factors of value creation. Thus can solve these influence factors, make thecompany's performance can significantly improve the company's shareholders to create more value.译文基于经济增加值的作业成本法作者：艾丽莎摘要作业成本法，又称为ABC成本法。

财务专业经济增加值EVA财务绩效评价资料外文翻译文献原文：EV A: A better financial reporting toolEconomic Value Added (EV A) is a financial performance measure being adopted by many companies in corporate America. This new metric, trademarked by Stern Stewart and Company, is a profit measure based on the concept of true economic income which includes the cost of capital for all types of financing. EV A provides a more comprehensive measure of profitability than traditional measures because it indicates how well a firm has performed in relation to the amount of capital employed. This article summarizes the EV A concept of measuring profitability, the EV A calculation and the benefits of adopting an EV A framework.The EV A Concept of ProfitabilityEV A is based on the concept that a successful firm should earn at least its cost of capital. Firms that earn higher returns than financing costs benefit shareholders and account for increased shareholder value.In its simplest form, EV A can be expressed as the following equation:EV A = Operating Profit After Tax (NOPAT) - Cost of CapitalNOPAT is calculated as net operating income after depreciation, adjusted for items that move the profit measure closer to an economic measure of profitability. Adjustments include such items as: additions for interest expense after-taxes (including any implied interest expense on operating leases); increases in netcapitalized R&D expenses; increases in the LIFO reserve; and goodwill amortization. Adjustments made to operating earnings for these items reflect the investments made by the firm or capital employed to achieve those profits. Stern Stewart has identified as many as 164 items for potential adjustment, but often only a few adjustments are necessary to provide a good measure of EV A.[1]Measurement of EV AMeasurement of EV A can be made using either an operating or financing approach. Under the operating approach, NOPAT is derived by deducting cash operating expenses and depreciation from sales. Interest expense is excluded because it is considered as a financing charge. Adjustments, which are referred to as equity equivalent adjustments, are designed to reflect economic reality and move income and capital to a more economically-based value. These adjustments are considered with cash taxes deducted to arrive at NOPAT.EV A is then measured by deducting the company's cost of capital from the NOPAT value. The amount of capital to be used in the EV A calculations is the same under either the operating or financing approach, but is calculated differently.The operating approach starts with assets and builds up to invested capital, including adjustments for economically derived equity equivalent values. The financing approach, on the other hand, starts with debt and adds all equity and equity equivalents to arrive at invested capital. Finally, the weighted average cost of capital, based on the relative values of debt and equity and their respective cost rates, is used to arrive at the cost of capital which is multiplied by the capital employed and deducted from the NOPAT value. The resulting amount is the current period's EV A.The remainder of this article summarizes the financing approach because it emphasizes the significance of capital employed and illustrates how accounting rules impact the calculation of EV A. Exhibit 1 on page 33 shows a sample calculation of EV A.EV A Calculation and AdjustmentsAs stated above, EV A is measured as NOPAT less a firm's cost of capital. NOPAT is obtained by adding interest expense after tax back to net income after-taxes,because interest is considered a capital charge for EV A. Interest expense will be included as part of capital charges in the after-tax cost of debt calculation.Other items that may require adjustment depend on company-specific activities. For example, when operating leases rather than financing leases are employed, interest expense is not recorded on the income statement, nor is a liability for future lease payments recognized on the balance sheet. Thus, while interest is implicit in the yearly lease payments, an attempt is not made to distinguish it as a financing activity under GAAP.Under EV A, however, the interest portion of the payment is estimated and the after-tax amount from it is added back into NOPAT because the interest amount is considered a capital charge rather than an operating expense. The corresponding present value of future lease payments represents equity equivalents for purposes of capital employed by the firm, and an adjustment for capital is also required. See Exhibit 1 for sample adjustments commonly used in the calculation of EV A.R&D expense items call for careful evaluation and adjustment. While GAAP generally requires most R&D expenditures to be expensed immediately, EV A capitalizes successful R&D efforts and amortizes the amount over the period benefiting the successful R&D effort.Another example of an EV A adjustment is the LIFO reserve increase. The increase is added back to profit because it converts inventory from a LIFO to FIFO valuation, which is a better approximation of current replacement cost. The full amount of the LIFO reserve represents past holding gains and accordingly is added back to the equity component to reflect the capital invested by the firm in inventory not yet reflected in equity under GAAP.Other adjustments recommended by Stern Stewart include the amortization of goodwill. The annual amortization is added back for earnings measurement, while the accumulated amount of amortization is added back to equity equivalents. Goodwill amortization is handled in this manner because by "un-amortizing" goodwill, the rate of return reflects the true cash-on-yield. In addition, the decision to include the accumulated goodwill in capital improves the real cost of acquiring another firm'sassets regardless of the manner in which the acquisition is accounted. While the above adjustments are common in EV A calculations, according to Stern Stewart, those items to be considered for adjustment should be based on the following criteria: Materiality: Adjustments should make a material difference in EV A.Manageability: Adjustments should impact future decisions.Definitiveness: Adjustments should be definitive and objectively determined.Simplicity: Adjustments should not be too complex.If an item meets all four of the criteria, it should be considered for adjustment. For example, the impact on EV A is usually minimal for firms having small amounts of operating leases. Under these conditions, it would be reasonable to ignore this item in the calculation of EV A. Furthermore, adjustments for items such as deferred taxes and various types of reserves (i.e. warranty expense, etc.) would be typical in the calculation of EV A, although the materiality for these items should be considered. Unusual gains or losses should also be examined and eliminated if appropriate. This last item is particularly important as it relates to EV A-based compensation plans.The Significance of the Capital ChargeUnder traditional financial reporting, a cost rate is not assigned for the equity used to finance operations. Thus, the use of net income as a performance measure is limited by the exclusion of that cost. In addition, when used in calculations such as return on equity, net income also includes the accounting distortions included in its calculation and that of book value.EV A, on the other hand, through its adjustment efforts, seeks to eliminate the impact of accounting distortions while treating the impact of financing costs more comprehensively in its capital cost charge. Therefore, a truer measure of economic profit is provided by EV A than that provided by the use of traditional GAAP-based measures. This may be significant because some companies spend heavily on R&D and the accounting treatment for this and certain in tangibles is not included on GAAP-based balance sheets. EV A provides a way to compare performance among firms impacted by these accounting weaknesses.The specific amount of the capital charge for EV A is based on the amount ofequity equivalents determined after adjustments, multiplied by the capital cost rate. The capital cost rate is based on the individual cost rates for both debt and equity. While the cost rate for debt can be readily determined, the rate for equity requires some effort. The cost for equity can be measured by using the capital asset pricing model, or other risk premium approaches.Once that rate is determined, it is combined with the relative proportions of capital to produce the weighted average cost of capital (WACC). It is that overall rate, when combined with all capital including equity equivalents, that produces the overall capital charge used in EV A. After the capital charge is calculated and deducted from NOPAT, the full extent of EV A' s benefits can be observed, because all opportunity costs involved in the production of income have been measured and included in profitability. An example of the WACC is shown in Exhibit 1.EV A-Based Compensation PlansFor firms that reward managers based on performance, EV A can offer advantages over traditional profit-based plans. First, by tying compensation to a better performance metric, the company can achieve a better matching of its own objectives with those of the manager. Second, EV A can help reduce some conflicts of interest often associated with managers and profitability measurement. Because an objective of EV A is to eliminate the impact of accounting distortions on profitability and the influence of management in its calculation, EV A is a better representation upon which to reward executives.It should be noted that EV A measurement is not without subjective elements. It may be necessary to involve an independent committee to determine the appropriateness of specific EV A adjustments and how to best handle unusual situations. Stern Stewart also recommends that EV A-based bonus systems involve some form of deferral of pay with the full amount of EV A bonuses dependent on long-term success.This feature of paying only a portion of the current amount and banking the remainder for the future is an important component of the system and is designed to enhance long-term loyalty to the firm. Bonuses should also be uncapped and includestock options, thereby turning managers into owners. The ability of the system to lower bonuses based on subsequent performance is one feature that makes EV A systems fair to both the company and its managers. Thus, EV A and its inclusion in compensation, rewards long-term success and helps the company promote this aspect of corporate performance.The overall success of the plan is dependent on several important factors including the ability of all employees to understand and agree with its goals. To reach this objective, it is necessary to provide focused training of EV A to all employees in the company. In that way, everyone better understands the philosophy and their role in the system. While this training may take considerable time and effort, it is usually rewarded by sustained improvements in EV A.EV A DriversAnother advantage of EV A systems is the emphasis on EV A drivers and the contribution of certain activities to EV A. When implementing EV A, firms seek to determine those areas of the business most responsible for success. By isolating activities, such as inventory management or capacity utilization, firms can judge the value of these on projects, divisions, etc. Thus management can focus on ways to increase economic value, rather than on reported numbers alone. By including capital contributions which do not require a stock price, firms are also able to use EV A in evaluating the performance of individual units or divisions of the firm as well as the managers who run those businesses. EV A helps focus on improving operating profits without tying up more capital in the business, curtailing or liquidating investments that do not meet capital costs, and/or reducing the cost of capital. Management actions such as cost reductions, improvements in technology, reduced working capital, or the optimal use of debt, represent the types of benefits resulting from EV A analysis and implementation.Share Price and EV AA controversy that surrounds EV A is whether it correlates well with a firm's stock prices as claimed by Stern Stewart. While many believe that it does, the results of several studies are mixed.[3] Nevertheless, many seem convinced of the overallbenefit of EV A. Therefore, firms contemplating the adoption of EV A, or any performance-based measure used for decision making and compensation, should examine their own individual characteristics, the underlying theory of the measure sought, and the likelihood that the measure selected will capture the attributes it seeks.For advocates of EV A, the underlying theory of finance embedded in its calculation is one of its strengths. This can more easily be seen when one considers that the present value of EV A parallels that of using net present value, and for capital projects, would be expected to yield a similar result.译文：EV A：一个较好的财务绩效评价方法经济增加值（EV A）作为财务绩效评价的一种方法，目前正被很多美国公司所应用。