TITLE:
Test of Evaluation of the Performance of Congolese Companies Transformed into Commercial Companies by the Method Economic Value Added (EVA)
AUTHORS:
Jules Luboya Kataba, Christophe Lusendi Matukama
KEYWORDS:
Performance, Economic Added Value (EVA), Trading Companies
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.12 No.7,
July
29,
2022
ABSTRACT: This study tries to show the importance of measuring the performance of
companies by the method of Economic Value Added (EVA: Economic Value Added).
Economic value added is currently considered an effective measure for
evaluating the performance of unlisted companies. Four companies were selected
and their performance was measured using the EVA method
for a period from 2016 to 2021. At the end of the analysis carried out, the
results were as follows: net destruction of value, i.e. a negative EVA for the
following companies: The National Electricity Company (NEC), The National Railway Company of Congo (NRCC) and the Commercial Company
of Port and Transports (CCPT). On the other hand, a positive EVA is a creation
of value for Water Distribution Company (WDC).
The destruction of value is attributable to endogenous factors such as a
constant deterioration in the return on the labor factor, negative operating
results and low profitability of this capital employed. But also by exogenous
factors including in particular the lack of good governance practices: ethics
and transparency which are also essential for the achievement of performance.
Transformation requires not only a new allocation of financial resources but
also the search for consistency between effectiveness, efficiency and
effectiveness.