| Issue |
SHS Web Conf.
Volume 39, 2017
Innovative Economic Symposium 2017 (IES2017)
|
|
|---|---|---|
| Article Number | 01017 | |
| Number of page(s) | 10 | |
| Section | Strategic Partnerships in International Trade | |
| DOI | https://doi.org/10.1051/shsconf/20173901017 | |
| Published online | 06 December 2017 | |
The importance of ROE for calculating EVA Equity: the case of Motor Jikov Strojírenská, a.s.
1 Institute of Technology and Business, School of Expertness and Valuation, Okruzni 517/10, 37001 Ceske Budejovice, Czech Republic
2 University of Žilina, Faculty of Operation and Economics of Transport and Communications, Univerzitná 8215/1, 01026 Žilina, Slovakia
* Corresponding author: rowland@mail.vstecb.cz
A remarkable success depends on a variety of factors, one of which is the ability to motivate the employees, increasing motivation of managers, measuring business processes and measuring and observing values of the company. The tangible results are also shown by the indicator of return on equity (ROE). The article aims at reflecting the importance of ROE for the EVA Equity (economic value added for shareholders) calculation of Motor Jikov Strojírenská, a.s. The data come from Albertina database. These are details of financial statements from 2000-2015. As a matter of fact, weighted average costs of capital, alternative cost value of equity capital and EVA Equity are calculated. Software Statistica and its sophisticated tool data mining - automated neural networks was used for finding a correlation between EVA Equity indicator and ROE. In addition, 10,000 neural networks were generated, five of which with the best results have been stored. The results show that EVA Equity is not dependent on the ROE rate.
Key words: return on equity (ROE) / economic value added for shareholders (EVA Equity) / correlation / company management / artificial neural networks
© The Authors, published by EDP Sciences, 2017
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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