外文翻译绩效评估经济增加值和管理行为Word文档下载推荐.docx

外文翻译绩效评估经济增加值和管理行为Word文档下载推荐.docx

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一、外文原文

原文一：

PerformanceEvaluation,EconomicValueAdded

AndManagerialBehaviour

Forthepasttwodecadesmanycountriesstartedtransformingtheireconomiesfromtraditionalprotectedonestothoseofmoreliberalized,globalizedandmarketdriven.ThisperiodhasalsoseentheeconomiesbecomingmoreknowledgeorientedandHumanResourcesstartedassumingmoreprominenceinthegrowthoftheeconomiesandbusinessesposingagreaterchallengeforcompaniestoacquireandretaintalentedworkforce（especiallyatthestrategic&

manageriallevels）.

Theknowledgeeconomyalsostartedwitnessingtherapidriseoftheagencyproblem-conflictofinterestbetweenmanagersandowners.Soitisveryessentialtoaligntheinterestsofthemangersandshareholdersoratleastreducethedifferencebetweenthem.InthisregardEconomicValueAddedhasbeenseenasbetteralternativetothestockpriceandtraditionalperformancemeasures.

WhilesuccessfulEVAstoriesinthewestarequiteencouraging,CorporateIndiaisslowlycatchinguptheEVAadoption.Althoughnotapanacea,EVAbasedcompensationplanswilldrivemanagersemployafirm’sassetsmoreproductivelyandEVAshouldhelpreducethedifferenceintheinterestsofthemanagersandshareholders,ifnotperfectlyalignthem.

1.Introduction

Forthepasttwodecadesmanycountriesstartedtransformingtheireconomiesfromtraditionalprotectedonestothoseofmoreliberalized,globalisedandmarketdriven.ThisperiodhasalsoseentheeconomiesbecomingmoreknowledgeorientedandHumanResourcesstartedassumingmoreprominenceinthegrowthoftheeconomiesandbusinesses.Butthishasalsoposedagreaterchallengeforcompaniestoacquireandretaintalentedworkforce（especiallyatthestrategic&

manageriallevels）.Theknowledgeeconomyalsostartedwitnessingtherapidriseoftheagencyproblem-conflictofinterestbetweenmanagersandowners.Themanagers–intheirroleastheagents–areexpectedtoactinthebestinterestsoftheshareholders（principals）.Managerswillactinshareholders’interestsonlyiftheyhaverightincentives.Soitisveryessentialtoaligntheinterestsofthemangersandshareholdersoratleastreducethedifferencebetweenthem.

Soweneedameasurethatononehandrightlymeasuresthemanagerialperformancesothathemanagers–withtalentandgreatermobility-canbesuitablycompensated（andhenceretained）andontheotheralignstheinterestsofthemangersandshareholders.

ForsometimenowStockPricewasthoughttobeanidealmeasureachievingtheaboveobjectives.Howeverstockpricehasmanylimitations.

WeshalldiscussthepitfallsofstockpriceasaperformancemeasurebeforeevaluatingsomeofthetraditionalperformancemeasuresandthenintroduceEconomicValueAddedastherightmeasureofmanagerialperformance.

2.TraditionalMeasuresofManagerialPerformance

Shareholderswantthemaximizationofstockprice（firmvalue）.Socanwemeasuretheperformanceofamanagerdirectlyasreflectedbythestockprice-Rewardmanagerswhenstockpricegoesupandpunishthemifstockpricesbehaveotherwise?

Thisapproachhasamajorlimitation.‘Stockpriceisdrivenbysomanyfactorsthatescapefromthecontrolofmanagers,makingitaninefficientmeasureofthetrueinfluenceofthemangersonfirm’svalue.‘Changesinstockprice-intheshortrunatleast–arenotalwaysaccurategauzeofmanagementperformanceduetothepresenceofrandomnessandnoise’（Kangetal,2002）.Tyingtopmanagementcompensationtostockpricesraisesanotherdifficultissue.Themarketvalueofacompany’ssharesreflectsinvestors’expectations.Thestockholderreturndependsonhowwellthecompanyperformsrelativetoexpectations’.Supposeacompanyannouncestheappointmentofanoutstandingnewmanager.Thestockpriceleapsupinanticipationofimprovedperformance.Henceforth,evenifthenewmanagerdeliversexactlythegoodperformancethatinvestorsexpected,thestockwillearnonlyanormalaveragerateofreturn.Inthiscaseacompensationschemelinkedtothestockreturnwouldfailtorecognizethemanager’sspecialcontribution.

Anidealperformancemeasureshouldensurethatthemanagerswouldbearalltheconsequencesoftheirownactions,butarenotexposedtothefluctuationsoverwhichtheyhavenocontrol.Insearchofsuchametric–traditionally-companiesareusedtocapturemanagerialperformanceandrewardthemthroughtheoperationbasedmeasureslikeProfits,EPS,ROCEandROE.Howeverthesemeasuresarenotfreefromlimitations.

Anappropriateperformancemeasureshouldassesshowmanagerialactionsaffectthefirmvalue.Forthistohappentheperformancemeasuremustincorporateatleastthreethings（Irala,2005）.

a.theamountofcapitalinvested

b.thereturnearnedonthecapitaland

c.costofcapital（WACC）–