| Issue |
SHS Web Conf.
Volume 129, 2021
The 21st International Scientific Conference Globalization and its Socio-Economic Consequences 2021
|
|
|---|---|---|
| Article Number | 03023 | |
| Number of page(s) | 8 | |
| Section | Financial Management and Financial Markets | |
| DOI | https://doi.org/10.1051/shsconf/202112903023 | |
| Published online | 16 December 2021 | |
Application of Economic Value Added under the Conditions of Globalization: Study of Real Estate Industry
University of Zilina, Faculty of Operation and Economics of Transport and Communications, Univerzitna 1, 010 26 Zilina, Slovakia
* Corresponding author: ivana.podhorska@fpedas.uniza.sk
Research background: The success and stability of any company depends mainly on its financial health. This research is focused on the application of economic value added as a methods for analysis of financial health of company. The EVA indicator characterizes the company’s ability, which is reduced by the price of equity. In other words, the capital invested in the company has a benefit that exceeds the cost of that capital. The goal of each owner is to achieve the maximum possible appreciation of this invested capital and thus ensure the appreciation of the company’s assets.
Purpose of the article: The main aim of the paper is to assess the financial health of companies in the real estate industry by economic added value under the conditions of globalization.
Methods: For research was used the data of Slovak enterprises from real estate industry, obtained from annual financial reports covering the year 2019. Based on these data economic value added were calculated. Especially, EVA equity methods was used. Cost of equity were quantified by capital assets pricing model. Subsequently, the results obtained were examined by descriptive statistics.
Findings & Value added: The results of paper bring comprehensive analysis of financial health of Slovak companies from real estate industry by economic value added. Paper identified the value of economic value added in all companies from this industry, quantified both, the largest and the smallest values of economic value added in data. Subsequently, study applied descriptive analysis of results.
Key words: economic value added; / real estate; / globalization
© The Authors, published by EDP Sciences, 2021
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.
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