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Keywords: Residual income
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Journal Articles
The long-term effect of economic value added adoption on the firm’s business decision
Available to Purchase
Journal:
Accounting Research Journal
Accounting Research Journal (2019) 32 (3): 496–513.
Published: 27 September 2019
... interests has been subject to considerable debate. One principle that has long been recognised is that, for a company to create value and to generate wealth, a firm must earn a rate greater than its cost of capital (Drucker, 1995). This is historically referred to as residual income (henceforth RI). One...
