Performance Measurement

  • Marcus Kriele
  • Jochen Wolf
Part of the EAA Series book series (EAAS)

Abstract

We present various notions of risk adjusted performance and show their applicability and their limits. These measures include the economic value added, return on capital, risk adjusted return on capital, and return on risk-adjusted capital. The concept of a “hurdle rate” gives a quantitative criterion as to whether a certain endeavor is worth undertaking. We also discuss value based performance concepts. Key performance indicators are introduced to provide practical performance measures that are tailored to the company at hand.

Keywords

Filtration Europe Income Expense Product Line 

References

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    CFO Forum, Market consistent embedded value — basis for conclusions. www.cfoforum.nl, October 2009
  2. 2.
    CFO Forum, Market consistent embedded value — principles. www.cfoforum.nl, October 2009
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    R.J. Elliott, P.E. Kopp, Mathematics of Financial Markets (Springer, New York, 1999) CrossRefMATHGoogle Scholar
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    M. Kriele, J. Wolf, On market value margins and cost of capital. Blätter DGVFM 28(2), 195–219 (2007) CrossRefMATHMathSciNetGoogle Scholar
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    E. Schmalenbach, Finanzierungen, 3rd edn. (Gloeckner, Leipzig, 1922) Google Scholar

Copyright information

© Springer-Verlag London 2014

Authors and Affiliations

  • Marcus Kriele
    • 1
  • Jochen Wolf
    • 2
  1. 1.HobokenUSA
  2. 2.Fachbereich Mathematik und TechnikHochschule KoblenzRemagenGermany

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