New Metrics Value-Based Management - Introduction of newly-developed measures of firm performance and exhaustive empirical examination of value-relevance. Dissertation, European Business School (EBS) 2008

Value-Based Management, a widely applied reference for strategic management, aims at maximizing sustainable shareholder value creation. However, respective accounting metrics to measure the firm`s wealth creation, such as residual income and Economic Value Added (EVA(r)), are distorted by accounting depreciation, implying inconsistent investment disincentives. Annette Holler introduces two new depreciation-adjusted value metrics and illustrates the depreciation-related bias in a case study. Finally, a regression analysis adds to previous evidence on associations between value creation and stock returns as well as firm values.