經(jīng)濟增加值外文文獻翻譯譯文

1、外文文獻翻譯譯文一、外文原文原文：Economic Value AddedEconomic Value Added (EA), when applied properly in a company, impacts all departments and decisions. The equation for EVas well as the adjustments that mustbe made to current accounting practices is the basis for an understanding of AE.V The success of EA is dis

2、played as companies that have implemented EVto varying degrees are compared with companies that have not implemented AE.VOnce the argument for the overall superiority of EVA is made, traditional performance measures and current accounting practices are evaluated. Then, the importance of creating val

3、ue within corporations becomes apparent. Finally, a detailed example of the implementation process that took place several years ago at Harsco argued in favor of all companies adopting EV. Economic Value AddedEconomic Value Added (EVA), for the last two to three decades, has been receiving an increa

4、sing amount of attention. Though it has become aviable business practice for many large corporations, it still has not successfully altered the approach of many corporate leaders. EA approaches the financial aspect of corporations from a different perspective than that to which most executives are a

5、ccustomed. To raise awareness of the benefits of EA, it is imperative to gain a basic understanding of the ideas, concepts, and implications associated with the implementation of policies at corporations that have adopted EAV. EVA EquationAt its core, the concept of Economic Value Added is relativel

6、y simple. The complexity is that the concept must be applied to every business decision at all levels of a particular company to realize the desired longun effects (Stewart, 1991). The A is as follows: equation for EV.EVA = Net Operating Profit After Taxes (NOPAT) - (Capital*The Cost of Capital).Thi

7、s idea helps managers integrate two basic principles of finance into their daily decision-making. First, the primary financial objective of all companies should be to maximize shareholder wealth. Second, the value of a company is based on investors expectations of future earnings exceeding or fallin

8、g short of the cost of capital. The cost of capital is a decisive measure pertaining to computing EV (Stewart, 1991). The cost of capital is the rate of return a company would expect to receive had they invested in a different venue with a similar risk (Cost of Capital). This amount is the figure th

9、at determines whether a corporation is performing well or badly. Although it may appear to be a cash cost, it is actually an opportunity cost. Calculating the trade-off between risk and reward derives an opportunity cost. The cost of capital consists of a risk free rate of return and a risk premium.

10、 Longterm U.S. government bonds are considered risk free because of the value of the entire economy as well as the taxing authority of the government. To 川ustrate, assume the rate for risk free government bonds is 6% and add to it the risk premium. Although, risk premiums vary by company and industr

11、y, most investors expect from 2% to 10% in addition to the government bond rate. Assume that the risk premium is 4%, add the risk free rate of 6%, and the cost of capital in this example would be 10%.The Success of EVATo quantify the extent to which companies that implement EVA outperform their comp

12、etitors, data were collected by Stern Stewart (2002b). Companies have seen high returns when they utilize Stern Stewarts EVA framework for performance management, valuebased planning and incentive compensation. Throughout the 1990s these same companies, on average, outperformed their competitors by

13、8.3% annually during the first five years after they first adopted EA. Improved operating margins, stronger cash flow generation, and quicker asset turnover were the catalysts responsible for greater stock market performance, which caused a $116 billion increase in shareholder wealth beyond that of

14、their competitors.The margin of performance is greater still for companies that use EV as a performance measure and A as a tool for determining management compensation. Companies that only used E Va performance measure did not obtain such impressive results (Stewart, 2002b). EVA vs. Other Financial

15、Performance MeasurementsThose in favor of using EVA as a performance measure argue that it is superior to other performance measures for the four following reasons: it is nearer to the real cash flows of the business entity; it is easy to calculate and understand; it has a higher correlation to the

16、market value of the firm and it aligns the goals of management with the interests of the shareholders. EV is superior to conventional measures such as Return on Investment (ROI), Return on Equity (ROE), and Return on Assets (ROA) because these calculations are based on accounting figures. Using Gene

17、rally Accepted Accounting Principles (GAAP), the assets in the balance sheet are carried based on historical costs while, with the exception of depreciation, revenues and expenses are recognized as either a profit or a loss at their current value. Due to this inaccuracy in the calculation of the val

18、ue of assets, the rates of return do not accurately determine the actual return on a given investment. As such, the rate of return is usually lower in the first few years and higher in the latter years. However, if the value of the mix of assets is close to the current value of the assets, the disto

19、rtion will not be as significant as when the value of the assets is far below the current value. Most companies rarely have the needed asset mix to make these accounting measures accurate; therefore, they cannot be regarded as true indications of the performance of the company.EVA as a Corporate Phi

20、losophyEVA is a concept that is not easy to understand but can be implemented with care at every level of an organization. Corporations across the globe, even some state owned enterprises in the United States, have adopted EVas a corporate philosophy. One important advantage of EA is that it improve

21、s business literacy because of its simplistic concept. Business literacy is the attempt of management to make all employees aware that for any activity to create value, the return needs to exceed the cost of capital for that particular activity. It also takes into consideration the cost of capital,

22、which many other conventional techniques fail to incorporate into their calculations.What Determines Company Value?In dealing with the topic of Economic Value Added, many questions surface for which the most astute professionals in business cannot agree. The most common of these is how one is to det

23、ermine the value of a company. To begin, several myths that abound in the market are followed by some valuation concepts. If one was to ask several top executives how value was determined and share prices set, there may be answers using the combination of several financial performance factors such a

24、s earnings, growth rates, returns book values, cash flows, dividends, and trading volumes. With this wide variety of answers, it is easy to understand the confusion many top managers have in determining what investors want. Therefore, they cannot realistically make wise business decisions that will

25、maximize shareholder wealth 一 theultimate goal in business (Stewart, 1991).Earnings or Earnings per ShareOne area of controversy is determining whether earnings or cash flows determine stock prices. To calculate share prices, one may use earnings per share (EPS) and the price/earnings multiple (P/E)

26、. This method is particularly appealing because it is so simple. However, it is the very simplicity that makes it an unreliable measure of value.The accounting model asserts that Wall Street determines share prices by multiplying EPS by an appropriate P/E. If this were the case, a company with EPS o

27、f $0.50 and a P/E of 5, would sell at $2.50. The major fault with this method is that it assumes that the P/E remains static. In reality, P/E changes frequently with acquisitions, new investment opportunities, and with changes in financial structure and accounting policies. Therefore, EPS do not pro

28、vide a reliable measure of value. In contrast, the economic model assumes share prices are the result of evaluations of future cash flows and the risk of the cash receipts of a business by sophisticated investors. In many firms, cash flow and earnings rise and fall simultaneously, so it is difficult

29、 to determine which factor is the primary cause for the resulting stock price. Studies have been conducted to find the events, which cause cash flow and earnings to depart in a particular company. These studies conclude that future cash flows are more important in the calculation of share prices tha

30、n earnings. Investors care more about cash than ahighershow to sales their inflate companies Many earnings. reported companys earnings for the benefit of the investor. If an investor is to invest wisely, he will ignore the earnings and look at the companys future cash flows to be produced during the

31、 business existence.Economic Model vs. Accounting ModelThe most important difference between the two models is that the accounting model relies on the balance sheet and income statement while the economic model relies on uses of cash and its source. This becomes significant when a company chooses fr

32、om a variety of accounting methods. Using the accounting model, it makes a big difference whether a cash outlay is expensed on the income statement or capitalized on the balance sheet because earnings are the driving force. Using the economic model, it only matters where the cash outlay is recorded

33、when it affects taxes. Ultimately, earnings are affected by the accounting procedures a company uses, such as choosing an inventory costing method, amortizing goodwill, accounting for research and development, and determining book value. Corporation ValuationDecisions in any company should be made e

34、xclusively on the basis of which decisions increase the value of the company the most. Therefore, a method is needed to determine the outcome of different business strategies and financial structuring in relation to the companys stock market value. That method is to project the most likely scenarios

35、 for a variety of business decisions in areas such as costs, benefits, risks, and rewards. Not only can a valuation framework provide management a way to select a strategy, but also, it can place a value on a consolidated company and its individual business units as well as on acquisition and divest

36、ure candidates. Corporate valuations can determine whether a company is currently trading for fair value and whether it should raise or retire equity at the current prices. Privately held companies should conduct valuations periodically to determine the share value for employee stock ownership plans

37、 as well as for management incentives. It is helpful for privately held companies to have this valuation done as a way of determining their progress in creating value for the firm. are ones which shows units business individual for framework valuation Aperforming well by creating value and which are

38、 underperformers. Doing so will give management a clearer picture as to which business units need to be invested in most heavily and which ones should be divested or restructured to maximize their value. This is crucial for any business because poor performance of part of one companys business has t

39、he capability to destroy market value. A study conducted by Stewart (1991) found that in one particular company, 30% of its business accounted for 200% of its total market value while the other 70% of the business was destroying 100% of its market value. Hence, the company was unknowingly devoting l

40、arge amounts of resources to business that never earned its cost of capital. Lastly, a valuation framework will help management determine how much it should pay for a potential acquisition. Overpaying will quickly reduce the acquirers own market value while increasing its chances for getting acquire

41、d in the future. Valuation can also be used in reverse. As mentioned previously, stock prices convey the expectations of investors regarding a companys prospects and risks. Therefore, a valuation framework can be used to develop projections that equate to that companys actual market value. Then an i

42、nvestor can use these projections to set bre-aekven goals. This will ensure that investors earn their required rate of return on initial investment (Stewart, 1991). ConclusionEconomic Value Added is a topic that encompasses all levels of business operations. It is imperative that measures be taken t

43、o ensure all members of a company are committed to the principles of EA.EVA is more than a performancemeasure; it is the focal point of a management system and a mindset. AWffords the Company the ability to establish clear, accountable links between strategic thinking, capital investment, day-to-day

44、 operating decisions, and shareholder valde (Stewart, 2003, 1).Source: MD Houle ,2008.Economic Value Added.Senior Honors Papers,pp.29.二、翻譯文章.譯文:經(jīng)濟增加值經(jīng)濟增加值（EVA,當適當應用于一個公司時會影響各部門和決定。經(jīng)濟增加值 的公式以及調(diào)整，必須以當前會計實踐的理解為基礎。經(jīng)濟增加值的成功與否在 于顯示企業(yè)實施不同程度的經(jīng)濟增加值與公司尚未實施經(jīng)濟增加值的比較。一旦有人認為，這一整體優(yōu)勢是由于經(jīng)濟增加值造成的，傳統(tǒng)的業(yè)績指標和當前會計 實踐就需要被進

45、行評估。然后,在公司內(nèi)創(chuàng)造價值的重要性就會變得明顯。 最后, 以一個幾年前發(fā)生在哈斯科集團的詳細實例的實施過程，來證明哈斯科集團贊成 所有公司采用經(jīng)濟增加值。經(jīng)濟增加值經(jīng)濟增加值（EVA，在最后的二、三十年中，已經(jīng)吸引了越來越多的關注。雖然 它已經(jīng)成為許多大公司商業(yè)實踐的可行方法之一 ，但是在改變公司的領導人方面 它還有不成功的地方。與大部分高管們的生活相比，經(jīng)濟增加值從不同的角度探 討企業(yè)財務方面。為了提高經(jīng)濟增加值益處的意識，必須對采用了經(jīng)濟增加值的 公司政策實施相關的思想、觀念、含義的進行基本了解。經(jīng)濟增加值的計算方程經(jīng)濟增加值這個核心概念是相對簡單的。其復雜的概念必須適用于各級的一個特

46、 定公司實現(xiàn)預期長期效應的各種商業(yè)決定（斯圖爾特，1991）。經(jīng)濟增加值的公式如下：經(jīng)濟增加值=稅后凈營業(yè)利潤（NOPAT-（資本*資本成本率）經(jīng)濟增加值這個想法幫助了經(jīng)理們整合兩個財務的基本原則以融入日常決策。首先，基本的財務目標應該是所有公司的股東財富最大化。第二，一個公司的價值是基于投資者對股票未來盈利的預期超出或降低資本成本。資本成本的計算決定 著有關經(jīng)濟增加值的措施（斯圖爾特，1991）。資本成本率是公司希望得到的關 于他們投資一個不同的地點有類似風險回報的比率（資本成本）。這個數(shù)字是決定公司執(zhí)行好與壞的指標。盡管它可能會出現(xiàn)現(xiàn)金的支出，但其實是機會成本。 機會成本是通過計算風險之間

47、的平衡和獎勵來汲取的。資本成本率由一個無風險 回報率和一個風險溢價組成。長期的美國政府債券被認為是無危險的，因其6%至 擔無風險利率的政府債券是，例如為整個經(jīng)濟以及稅務部門政府的價值。.中增加了風險溢價。雖然，風險溢價受公司和行業(yè)的改變，但大多數(shù)的投資者期望 值為2%-10%除了政府債券率。假設風險溢價是 4%加上無風險利率6%,則資本 成本率在這個例子是10%成功的經(jīng)濟增加值根據(jù)斯圖爾特公司（2002b）的數(shù)據(jù)收集，實施經(jīng)濟增加值的公司的量化程度勝 過他們的競爭對手。他們利用斯圖爾特公司的經(jīng)濟增加值進行績效管理、價值規(guī) 劃和激勵補償時，公司已經(jīng)看見了高回報。在 20世紀90年代這些相同的公司

48、， 在他們首次采用經(jīng)濟增加值后的前五年以平均每年 8.3%的比率超越其對手。改 進的生產(chǎn)利潤、較強的現(xiàn)金流產(chǎn)生、更快的資產(chǎn)周轉率是較大的股票市場表現(xiàn)的 催化劑，這導致了超出其競爭對手116億美元股東財富的增加?？冃У睦麧檶τ?將實施經(jīng)濟增加值作為績效評價的措施和決定管理報酬的工具是較大的。只用經(jīng)濟增加值評定績效的公司并沒有獲得這樣令人印象深刻的結果（斯圖爾特，2002b）。經(jīng)濟增加值與其他業(yè)績評價措施的比較那些贊成使用經(jīng)濟增加值作為績效評價措施的人認為經(jīng)濟增加值明顯優(yōu)于其它 業(yè)績指標，有如下四個原因：一、它離真正的現(xiàn)金流量更近，企業(yè)很容易計算和 理解。二、對市場價值的公司具有較高的相關性，它的

49、目標與股東利益相一致。 三、經(jīng)濟增加值優(yōu)于傳統(tǒng)業(yè)績評價的措施，諸如投資報酬率（ROI）,凈資產(chǎn)報酬 率（ROE和資產(chǎn)U益率（ROA,因為這些指標的計算結果是基于統(tǒng)計數(shù)據(jù)算得 的。四、使用一般公認會計原則（GAAP編制，資產(chǎn)在資產(chǎn)負債表的上根據(jù)歷史 成本得出的同時，除了折舊、稅收和費用在他們目前的價值被公認為任何一個利 潤或損失。由于這種資產(chǎn)價值計算的不精確性，回報率不準確地確定了實際的投 資回報。同樣地，回報率通常也要低于前幾年或高于后幾年。然而，如果資產(chǎn)組 合的價值接近當前的資產(chǎn)價值，資產(chǎn)價值遠低于當前價值這種扭曲不會那么典型。 大多數(shù)公司很少有需要資產(chǎn)組合使這些會計核算準確的辦法，因此，他

50、們不能被視為是公司績效評價的真實的跡象表明。經(jīng)濟增加值作為公司的宗旨經(jīng)濟增加值是一種觀念，那不是很容易理解，但可以通過關心一個組織的每都采 用了經(jīng)濟增加甚至一些國家的企業(yè)在美國，公司在世界各處，一水平實現(xiàn)。 .值作為公司的宗旨。經(jīng)濟增加值的優(yōu)點之一是它可以提高業(yè)務素質(zhì)， 因為它簡單 的概念。業(yè)務素質(zhì)是管理人嘗試，讓所有的員工覺得，什么活動都可以創(chuàng)造價值， 返回需要超過該特定的活動的資本成本。 它也考慮了許多傳統(tǒng)的方法未能納入的資本成本的計算。是什么決定了公司的價值呢？在處理經(jīng)濟增加值的話題中，許多問題連最精明的專業(yè)人員意見也不一致。 最常 見的問題是你怎樣確定一個公司的價值。 開始的時候，市場上充滿了幾個神話評 價的概念。如果一個人正在問幾個高層管理人員如何確定價值和股票價格，他們可能會利用相結合的幾個財務指標比如收入、增長率、賬面價值回報率、現(xiàn)金流量、股息和交易量回答你。不難理解會有各種各樣的答案，因為許多高層管理者