00:00    |    
Initial credits
00:06    |    
Introduction
01:22    |    
Quotes Abraham Lincoln
01:49    |    
Constructive criticism
02:28    |    
Variable compensation mechanism
03:40    |    
Market based incentives
Changes in share price actuals
Prices
Exogenous factors
Allocated stock options
11:40    |    
Economic Value Added (EVA)
12:31    |    
First consulting venture
Quotes  What does the market really capitalize?, Franco Modigliani and Merton Miller
15:36    |    
EVA royal mail application 
17:29    |    
Middle management incentives
18:43    |    
Value creation
20:29    |    
Restructuring costs
21:11    |    
Market value as a given
23:49    |    
What happens if markets are not as efficient as they should be?
25:01    |    
Market efficiency
27:18    |    
Share price pattern
30:03    |    
How do you manage new information entering the market related to adding value?
31:37    |    
EVA anecdote
Government reaction
36:45    |    
Private companies
Capital structure
Business risk
38:33    |    
Bond ratings
40:56    |    
Academic experience
43:22    |    
Is valuing a bank different from a cement company?
45:39    |    
Loan anecdote
47:51    |    
Business dynamics
50:08    |    
Tax deductions
52:07    |    
Cost of equity analysis
55:15    |    
Bank capital structure
57:42    |    
EVA incentive contract
01:00:43    |    
Do you recommend a specific way of implementing EVA?
01:04:41    |    
Are there other mechanisms for creating value?
01:07:46    |    
Incentives in public utilities
01:10:38    |    
Quotes "Genesis,"  The Bible
01:13:21    |    
Proposal to Universidad Francisco Marroquín
01:15:30    |    
Price determination
01:16:47    |    
Insurance companies
01:18:35    |    
Modigliani-Miller valuation model
Barack Obama's administration
Quotes "The World's Gone Mad," Forbes Magazine
01:25:38    |    
Incentive contract design
01:27:04    |    
Question and answer period
If the markets are efficient, does that mean that EVA would result in zero?
Company growth rate
01:32:52    |    
Final words
01:33:24    |    
Final credits



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Relationship between the “Efficient Market Theory”, Performance, Incentives and Economic Value Added (EVA)

18 de octubre de 2011   | Vistas: 27 |   Capitalism Competition Economic Value Added (eva) Economy

Most successful companies in the market use incentive programs to increase productivity and by doing so, they raise net revenue. Joel M. Stern defies the common notion of this motivational mechanism and destroys market based incentive paradigms, which -he believes- create a free rider problem. By using empiric information, Stern describes his experiences with Economic Value Added (EVA) and explains several features of this useful resource. He describes how this technique can be used -as an alternative to the mechanisms mentioned before- in different types of companies, and focuses on the dynamics of innovation and efficiency. He insists on including every person in the company, who shouldn´t be called an employee but an factor of value creation instead.




Joel M. Stern is the creator and developer of Economic Value Added (EVA), Chairman and CEO of Stern Stewart &…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín