经济附加值市场增加值和杠杆之间的关系文献翻译.docx
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经济附加值市场增加值和杠杆之间的关系文献翻译
原文:
Abstract
Itisgenerallybelievedthatinordertomaximizevalueforshareholders,companiesshouldstrivetowardsmaximizingMVA(andnotnecessarilytheirtotalmarketvalue).ThebestwaytodosoistomaximizetheEVA,whichreflectsanorganization’sabilitytoearnreturnsabovethecostofcapital.Theleverageavailabletocompaniesthatincurfixedcostsanduseborrowedcapitalwithafixedinterestchargehasbeenknownandquantifiedbyfinancialmanagersforsometime.ThepopularizationofEVAandMVAhasopenedupnewpossibilitiesforinvestigatingtheleverageeffectoffixedcosts(operationalleverage)andinterest(financialleverage)inconjunctionwithEVAandMVA,andfordeterminingwhateffectchangesinsaleswouldhavethroughleverage,notonlyonprofits,butalsoonEVAandMVA.CombiningavariablecostingapproachwithleverageanalysisandvalueanalysisopensupnewopportunitiestoinvestigatetheeffectofcertaindecisionsontheMVAandthesharepriceofacompany.Aspreadsheetmodelisusedtoillustratehowfinancialmanagerscanusetheleverageeffectsoffixedcostsandthe(fixed)costofcapitaltomaximizeprofitsandalsotodeterminewhatimpactchangesinanyvariablelikesalesorcostswillhaveonthewealthofshareholders.
Introduction
Fewwouldarguethatthemostimportantfinancialgoalofabusinessorganizationshouldbetomaximizethewealthofitsshareholders.Foranumberofyearsnow,accountingmeasuressuchasearnings,returnonassetsandreturnonequityhavebeencriticizedandfoundwantingasperformanceindicatorsendingtogreatershareholderwealth.Theconceptofvaluemanagementresultedfromapursuitoftherealdriversofvalue,andtheperformancemeasuresEconomicValueAdded(EVA)andMarketValueAdded(MVA)arenowknownfairlywellandusedwidelybycompaniesallovertheworld.Theobjectiveofthisstudyistolinkthecostmanagementtechniquesofvariablecostingandcost-volume-profitanalysiswiththefinancialmanagementtechniquesofleverageanalysisandvalueanalysisinordertodeterminehowdecisionsorchangesininputswillaffecttheshareholdervalue.Thestudyalsointroducestheleverageeffectofthecostofequityasanewconceptandillustrateshowitreactsinconjunctionwithoperatingleverageandfinancialleveragetodeterminethetotaloverallleverageofthecompany.Thisnewapproachwouldbeusefulfordecision-makingpurposesinassessingtheimpact,notonlyofdifferentdecisionalternatives,butalsoofchangesininternalfactorslikeproductioncostsorexternalfactorslikeinflationandtaxrates.Thefindingsofthisstudycouldbeofvaluetomanagersatalllevelsinabusinessorganization,butespeciallytofinancialmanagers.Existingshareholdersandpotentialinvestorswouldalsobenefitfromthefindingsofthestudy,butthecompanydataneededasinputsforthemodelwouldnotbeavailabletothem.
Theobjectiveofthisstudyistolinkthecostmanagementtechniquesofvariablecostingandcost-volume-profitanalysiswiththefinancialmanagementtechniquesofleverageanalysisandvalueanalysisinordertodeterminehowdecisionsorchangesininputswillaffecttheshareholdervalue.Thestudyalsointroducestheleverageeffectofthecostofequityasanewconceptandillustrateshowitreactsinconjunctionwithoperatingleverageandfinancialleveragetodeterminethetotaloverallleverageofthecompany.
Thisnewapproachwouldbeusefulfordecision-makingpurposesinassessingtheimpact,notonlyofdifferentdecisionalternatives,butalsoofchangesininternalfactorslikeproductioncostsorexternalfactorslikeinflationandtaxrates.Thefindingsofthisstudycouldbeofvaluetomanagersatalllevelsinabusinessorganization,butespeciallytofinancialmanagers.Existingshareholdersandpotentialinvestorswouldalsobenefitfromthefindingsofthestudy,butthecompanydataneededasinputsforthemodelwouldnotbeavailabletothem.
InthisarticleEVA,MVAandleveragewillbediscussedbriefly,followedbyanillustrationofthedevelopmentanduseofaspreadsheetmodeltoextendtheleverageanalysisofprofitstoEVAandMVA.TheleverageeffectofthecostofequityonEVAandMVAisinvestigated.Theinitialhypothesisisthatsimilartofixedcostsandinterest,thecostofequitywillalsohavealeverageeffectontheprofits(andEVAandMVA)ofthebusiness.Itshouldbepossibletoquantifythisleverageeffectandtouseit,togetherwiththewell-knownoperatingleverageandfinancialleveragefactors,todeterminethetotalleverageforthecompany.Oncethetotalleverageisdetermined,itwouldbepossibletopredictwhateffectanychangeininputwillhaveonprofits,EVAandMVA.Anattemptismadetoderiveaformula(givencertainassumptions)topredictwhateffectaparticularchangeinvolume(sales)wouldhaveonEVAandMVA.
Finally,theimpactofdifferentlevelsofoperatingandfinancialleverageonprofits,EVAandMVAisevaluated.
TheconceptsofEVA,MVAandleverage
EVAandMVA
Acompany’stotalmarketvalueisequaltothesumofthemarketvalueofitsequityandthemarketvalueofitsdebt.Intheory,thisamountiswhatcanbe“takenout”ofthecompany(i.e.whenallsharesaresoldanddebtisrepaid)atanygiventime.TheMVAisthedifferencebetweenthetotalmarketvalueofthecompanyandtheeconomiccapital(Firer1995:
57;ReillyandBrown2003:
591).
Theeconomiccapital,alsocalledinvestedcapital(IC),istheamountthatis“putinto”thecompanyandisbasicallythefixedassetsplusthenetworkingcapital.
MVA=Marketvalueofcompany–InvestedCapital
Fromaninvestor’spointofview,MVAisthebestfinalmeasureofacompany’sperformance.Stewart(1991:
153)statesthatMVAisacumulativemeasureofcorporateperformanceandthatitrepresentsthestockmarket’sassessmentfromaparticulartimeonwardsofthenetpresentvalueofallacompany’spastandprojectedcapitalprojects.MVAiscalculatedatagivenmoment,butinordertoassessperformanceovertime,thedifferenceorchangeinMVAfromonedatetothenextcanbedeterminedtoseewhethervaluehasbeencreatedordestroyed.
EVAisaninternalmeasureofperformancethatdrivesMVA.Stewart(1991:
153)definesEVAasfollows:
“Acompany’sEVAisthefuelthatfiresupitsMVA.”EVAtakesintoaccountthefullcostofcapital,includingthecostofequity.TheconceptofEVAisameasureofeconomicprofitandwaspopularizedandoriginallytrade-markedbySternStewartandCompanyinthe1980s.
ThecalculationofEVAisthesameasthatofthewell-known“residualincome;measurethathasbeenusedasabenchmarkofdivisionalperformanceforsometime.Horngren,DatarandFoster(2003:
790)andGarrison,NoreenandSeal(2003:
616)compareEVAtoresidualincomeandotherperformancemeasuresanddescribethegrowingpopularityofEVA.EVAiscalculatedasfollows:
EVA=(ROIC–WACC)×IC
Where
ROIC=Returnoninvestedcapital
WACC=WeightedAverageCostofCapital
IC=InvestedCapital(atthebeginningoftheyear)
EVAcanalsobedefinedasfollow:
EVA=NOPAT–(WACC×IC)
Where
NOPAT=netoperatingprofitaftertax
ThelinkbetweenMVAandEVAisthattheoretically,MVAisequaltothepresentvalueofallfutureEVAtobegeneratedbythecompany.
MVA=presentvalueofallfutureEVA
LinkbetweenEVA,MVAandleverage
Itwasindicatedthat,theoretically,MVAisequaltothepresentvalueofallmfutureEVAS.OntheassumptionthattherewillbenofuturegrowthinthecurrentEVA,orthattheexpectedfuturegrowthinEVAwillbeataconstantrate,g,thetheoreticalMVAcanbecalculatedasaperpetuity.TheresultshowsthatMVAisamultipleofthecurrentEVA.
EXAMPLE:
CompanyAhasacurrentEVAofR100m.ItsWACCis20%.IfnofuturegrowthinEVAisexpected,thetheoreticalMVAcanbecalculatedasfollows:
MVA=PV(futureEVA)
=currentEVA/WACC
=R100m/0.2
=R500m
Inthisinstance,MVAisfivetimesthecurrentEVA,orR500/R100m.
IfEVAisexpectedtogrowataconstantrateof10%infuture,thetheoreticalMVAcanbecalculatedasfollows:
MVA=PV(futureEVA)
=currentEVA/(WACC–g)
=R100m/(0.2–0.1)
=R1000m
Withtheassumptionof10%futuregrowthinEVA,MVAistentimesthecurrentEVA,or(R1000m/R100m).ThefactthatMVAistheoreticallyamultipleofthecurrentEVAmeansthatanypercentagechangeinEVAshouldcausethesamepercentagechangeinMVA.
Ifthecostofequityissubtractedfromprofits(afterinterestandtax),onegetsEVA.Ifoneassumesthatthecapitalstructureandthecostofequitypercentageremainunchanged,theamountdebitedasthecostofequityinthecalculationofEVAisafixedamount.ThisfixedamountofthecostofequityalsohasaleverageeffectthatcausesEVA(andthetheoreticalMVA)tochangemoredramaticallythanprofitswhentherearechangesinthesalesvolume.Theleverageeffectofthecostofequity(referredtoasEVAleverage)cannowbeinvestigatedandcombinedwithoperationalandfinancialleveragetostudytheeffectonabusinessasawhole.
Researchmethod
Aspreadsheetmodelwasdevelopedusingdifferentlevelsofoperatingleverageandfinancialleverage.Therelationshipbetweenprofits(afterinterestandtax)andEVAwasdetermined.Thiswasdonebyusingthecostofowncapital(equity)andthisfixedamountcanthereforebedescribedasaleveragefactorforEVA.
Furthermore,theEVAleveragefactorwascombinedwiththeoperatingandfinancialleverage.ItthenbecamepossibletoillustratehowtheexpectedpercentagechangeinEVAandMVAcanbepredicted,givenacertainpercentagechangeinsales(orprofits).
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