ANALYSIS OF THE ECONOMIC VALUE ADDED AS A MEASURE OF FINANCIAL INSTITUTIONS PERFORMANCE IN KENYA; (CASE OF COMMERCIAL BANKS IN KENYA)

Abstract

Economic Value Added (EVA) is a performance measure that calculates the creation of shareholder value and has been widely adopted by management worldwide when making decisions to increase productivity, where to invest new capital and which under performing assets to liquidate. Extensive research has been done on EVA and other performance measures internationally, where EVA has been widely used by investors and analysts as a measure of company performance when deciding on which shares to invest in.