APPLICATION ON THE TRADED BANKS IN THE BIST BY EVA AS FINANCIAL PERFORMANCE MEASUREMENT METHOD
FİNANSAL PERFORMANS ÖLÇÜM YÖNTEMİ OLARAK EVA İLE BİST’DE İŞLEM GÖREN BANKALAR ÜZERİNE BİR UYGULAMA

Author : Emre Hayri BARAZ -- Bahatdin DAŞBAŞI
Number of pages : 520-537

Abstract

It has could lead to incorrect financial decisions due to ignoring of the capital cost in the calculation of the traditional financial performance measures. In order to eliminate these types of errors, EVA “Economic Value Added” has been used as depending on elements which are financial performance, net operating profit after tax, investments in assets needed to achieve this profit and the investment costs to these assets (the weighted average cost of capital) by taking into account the cost of capital. In this study, the net profits of banks traded on BİST and EVA values revealing true face of this profit have been compared. In this sense, it has presented the real success criteria of these banks by performing the comparison EVA & Net Profit and Return on Equity & EVA/ Equity.

Keywords

Economic Value Added, Net Profit, Return on Equity, Cost of Investment, Banking, Financial Performan

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