经济增加值的基本原理文献翻译.docx

经济增加值的基本原理文献翻译.docx

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经济增加值的基本原理文献翻译

原文：

Foundationsofeconomicvalueadded

TheEVARevolution

Inamarket-driveneconomymanycompanieswillcreatewealth.Otherfirmshoweverwillundoubtedlydestroyit.Discoveringthoseeconomicfactorsthatleadtowealthcreationanddestructionamongcompaniesisimportanttomanyconstituencies,nottheleastofwhichiscorporateofficialsandinvestmentmanagers.Forcorporatemanagers,wealthcreationisfundamentaltotheeconomicsurvivalofthefirm.Managersthatfail（orrefuse）toseetheimportanceofthisimperativeinanopeneconomydosoattheperiloftheorganizationandtheircareer.

Findingthe“best〞companiesandindustriesinmarketplaceisofprimaryimportancetoinvestmentmanagers.Withtheproperfinancialtools,portfoliomanagersmaybeabletoenhancetheiractiveperformanceover-and-abovethereturnsavailableonsimilarriskindexedpassivestrategies.AnewanalyticaltoolcalledEVAisnowassistingthiswealth-discoveryandcompany-selectionprocess.Theinnovativechangesthatthisfinancialmetrichavespawnedinthetwinareasofcorporatefinanceandinvestmentmanagementisthedrivingforcebehindwhatcanbeformerlycalledthe“EVArevolution〞.

EVAinpractice

TheanalyticaltoolcalledEVA,forEconomicValueAdded,wascommerciallydevelopedin1982bythecorporateadvisoryteamofJoelSternandG.·Bennett·StewartⅢ.Thisfinancialmeticgainedearlyacceptancefromthecorporatecommunitybecauseofitsinnovativewayoflookingatthefirm’srealprofitability,unliketraditionalmeasuresofprofit—suchasEBIT,EBITDA,andnetoperatingincome—EVAlooksatthefirm’s“residualprofitability〞,netofboththedirectcostofdebtcapitalandtheindirectcostofequitycapital.Inthisway,EVAservesasamodern-daymeasureofcorporatesuccessbecauseitiscloselyalignedwiththeshareholderwealth-maximizationrequirement.

LargefirmslikeCocaCoca,Diagea,Lilly（Eli）,Guidant,andSPXhaveusedEVAasaguidetocreatingeconomicvaluefortheirshareholders.Bonusesandincentivepayschemesatthesefirmshavebeenbuiltaroundthemanager’sability（orlackthereof）togeneratepositiveEVAwithinthefirm’soperatingdivisions.Positivepaymentsaccruetomanagershavingdivisionaloperatingprofitsthatonbalanceexceedtherelevant“costofcapital〞,whilenegativeincentivepaymentsmayoccurifthelarger-termdivisionaloperatingprofitsfallshortoftheoverallcapitalcosts.Thus,byaaccountingforboththecostofdebtandequitycapital,EVAgivesmanagerstheincentivetoactlikeshareholderswhenmakingcorporateinvestmentdecisions.

EVAisalsogainingpopularityintheinvestmentcommunity.TheJune1996conferenceon“EconomicValueAdded〞atCSFirstBostonandthe“rollout〞ofGoldmanSachs’EVAresearchplatforminMay1997istestimonytothisexcitingdevelopment.Indeed,“buyside〞investmentfirmslikeGlobalAssetManagementandOppenheimerCapitaluseEVAintheirstockselection,portfolioconstruction,andriskcontrolprocesses.Otherlargeinvestmentfirmsaretakingaseriouslook,andEVAisalsomakingmeaningfulinroadsinworldofglobalperformanceanalytics.Moreover,recentempiricalstudiesintheJournalPortfolioManagement（amongotherfinanceandinvestmentjournals）showsthatEVAisbeingadvancedinboththeacademicandfinancialcommunities.

EvolutionofEVA

Theevolutionofeconomicprofit—economicvalueadded（EVA）—isafascinatingstudywithhistoricalrootsthatcanbetracedbacktotheclassicaleconomist’snotionof“residualincome.〞Forinstance,considerthedefinitionofeconomicprofitmadein1890byfamousBritisheconomist,AlfredMarshall,regradingtherealmeaningofabusinessowner’sprofit:

“Whatremainsofhisprofitsafterdeductinginterestonhiscapitalatthecurrentratemaybecalledhisearningsofundertakingormanagement.〞

BasedonMarshall’sstatement,itisevidentthattheeconomists’definitionofprofit—namely,aresidualviewofincomeoreconomicprofit—isradicallydifferentfromtheaccountingmeasuresofprofitinusetoday,suchasEBIT,EBITDA,ornetoperatingincome.Thisis,akeydistinctionbetweeneconomicprofitandaccountingprofitliesintheclassicaleconomists’notionthatacompanyisnottrulyprofitableunlessitsrevenuehavecoveredtheusualproductionandoperatingexpensesofrunningabusiness,andprovidedanormalreturnontheowners’investedcapital.Inamorefundamentalsense,thisresidualviewofincomeisreallywhattoday’seconomicprofitmovementisreallyallabout.

WhileEVAisrootedinclassicaleconomictheory,threepioneering20thcenturyAmericaneconomists—IrvingFisherduringthe1930s,andNobelLaureatesFrancoModiglianiandMertonMillerinthelate1950stoearly1960s—expandeduponthefullermeaningofeconomicprofitinacorporatevaluationcontext.IrvingFisherestablishedafundamentallinkbetweenacompany’snetpresentvalue（NPV）anditsdiscountedstreamofexpectedcashflows.Inturn,ModiglianiandMillershowedthatcorporateinvestmentdecisions—asmanifestinpositiveNPVdecisions—aretheprimarydriverofafirm’senterprisevalueandstockprice—asopposedtothefirm’scapitalstructuremixofdebtandequitysecurities.

Basically,thetheoryofeconomicvalueaddedrestsontwoprincipleassertions:

（1）acompanyisnottrulyprofitableunlessitearnsareturnoninvestedcapitalthatexceedstheopportunitycostofcapitaland

（2）thatwealthiscreatedwhenafirm’smanagersmakepositiveNPVinvestmentsdecisionsfortheshareholders.WhatexpandontheseEVAtenetsofwealthcreationaswemoveforwardinthisbook.Fornow,Let’slookatoperationaldefinitionsofEVAthathaveshapedthecurrenteconomicprofitmovementaswellasintroducethelinkbetweenacompany’seconomicprofitanditsmarketvalueadded.

OperationalDefinitionsofEVA

Therearetwopopularoroperational,waysofdefiningEVA——namely,an“accounting〞wayanda“finance〞.Fromanaccountingperspective,EVAisdefinedasthedifferencebetweenthefirm’snetoperatingprofitaftertax（NOPAT）anditsweighted-averagedollarcostofcapital.Asaresult,EVAdiffersfromtraditionalaccountingmeasuresofcorporateprofitincluding,EBIT（earningsbeforeinterestandtaxes）,EBITDA（EBTTplusdepreciationandamortization）,netincome,andevenNOPATbecauseitfullyaccountsforthefirm’soverallcapitalcosts.Thisanalyticaldifferenceisimportanttothefirm’sownersbecausetheEVAmeticisnetofboththedirectcostofdebtcapitalandtheindirectcostofequitycapital——asreflectedtheshareholders’requiredreturnoncommonstock.Inthiscontext,EVAcanbeexpressedinmoregeneraltermsas:

EVA=NOPAT-$CostofCapital

Inthisexpression,thefirm’sdollarcostofcapitaliscalculatedbymultiplyingthepercentagecostofcapitalbytheamountofinvestedcapitalaccordingto:

$CostofCapital=[%CostofCapital/100]*Capital

Inturn,thepercentagecostofcapitalisobtainedbytakinga“weightedaverage〞ofthefirm’safter-taxcostofdebtandequitycapitalasshownby:

%CostofCapital=[Debtweight*%After-taxdebtcost+Equityweight*%Costofequity]

EVA:

TheFinanceInterpretation

Fromafinanceperspective,EVAisdefinedintermsofhowitrelatestothefirm’s“marketvalueadded.〞Inthiscontext,MVA（orNPV）isequaltothepresentvalueofthefirm’sexpectedfutureEVA.Additionally,sinceMVAisequaltothemarketvalueofthefirmlessthe“bookcapital〞employedinthebusiness,itcaneasilybeshownthatEVAisrelatedtotheintrinsicvalueofthefirmanditsoutstandingdebtandequitysecurities.Statingtheseconceptsinmoreformaltermsyieldsthefamiliarvalue-basedrelationshipbetweenthefirm’s“marketvalue.

MVAandEVA:

GrowthConsiderations

ThebasicEVAandMVAlinkageoutlinedabovecanalsobeextendedtoamultiperiodframework.Withoutgettingintocomplicatedpricingdetailshere,onecanusea“constantgrowth〞EVAmodeltoshowthepricingimportanceofboththefirm’snear-termEVAoutlookanditslong-termEVAgrowthrateindeterminingoverallcorporate（orenterprise）valuation.Inthis“Gordon-like〞model,therelationshipbetweenthefirm’sMVAanditsEVAoutlookforthefutureisexpressedas:

MVA=EVA

（1）/（COC-gEVA）

Inthisexpression,EVA

（1）isthefirm’scurrentEVAoutlook（one-yearaheadforecast）,gEVAisthefirm’sassessedlong-termEVAgrowthrate,andCOCisthefamilialweightedcostofdebtandequitycapital.

Theconstant-growthEVAmodelshowsthatthefirm’smarketvalueadded（MVA）ispositivelyrelatedtoitsnear-termEVAoutlook,asmeasuredbyEVA

（1）,aswellasthefirm’sassessedlong-termEVAgrowthrate,gEVA.Asshown,thefirm’sMVAisalsonegativelyrelatedtoanyunanticipatedchangesintheweighed-averagecostof（debtandequity）capital,COC.However,inviewofmoderndaycapitalstructureprinciples（alaMiller-Modigliani）,this“costofcapital〞interpretationdoesnotimplythatthefirm’scorporatedebtpolicyhasanymeaningfulimpactonthevaluationofthefirmanditsoutstandingdebtandequityshares.

PREVIEWOFWEALTHCREATERS

Let’snowtakeapreliminarylookattheMVAandEVArelationshipformajorU.S.wealthcreatorsanddestroyers.TheMVAandEVAcharacteristicsforfivelargeU.S.wealthcreators—includingGeneralElectric,CiscoSystems,MicrosoftCorporation,Wal-MartStores,andMerck—forthe11-yearperiodcovering1990to2000areshowninExhibits1.2and1.3.TheselargecapitalizationcompanieswerelistedbySternStewart&Co.asthetop-fiveU.S.wealthcreators（basedonMVAranking）intheir2001PerformanceUniverse.

Exhibit1.2showsthatwealthcreatorslikeGeneralElectric,CiscoSystems,andMerckhavesubstantiallyposit