S. David Young
Professor of Accounting and Control
We hear a lot of these days about the shareholders value revolution sweeping the globe. As a professor at INSEAD, an international business school based in France, and from his personal experiences as a consultant, the author testifies to the enormous interest expressed by European and Asian managers in economic value added (EVA®) and other instruments of value-based management.The world's major consulting firms (Mckinsey, BCG, KPMG, Deloitte and Touche, etc.) all have fast-growing, value-oriented practices, and shareholder value concepts now receive unprecedented levels of coverage in business periodicals such as France's L'Expansion and Germany's Capital. Still, in general, Europe and Asia are years behind the United States in value-based thinking. And even when European and Asian managers attempt to promote such thinking in their companies, the implementation and practice of value-based management differs in important ways from the American experience.This chapter explores the application of EVA and value-based management in the non-American context. Most of the discussion focuses on recent experiences in Europe but Asia will be considered as well.