Abstract:

(Investor Psychology and Behavioral Finance Approach) In this study, Economic Value Added (EVA), which is a value-based performance criteria is examined. EVA is a performance criteria measuringthe value-created by the firm based on the economic profit not accounting profit. In this study, firstly some information about performance criteria are given and then EVA is explained. In the last section of the study integrated traditional activity-based costing system (ABC) and EVA are analyzed. In this analysis, activity-capital dependence anlysis and capital cost portion of the firms’, activities which are determined according to traditional ABC system are calculated. Lastly, cost of the product which are produced in the firm is calculated according to the ABC system and then according to the integrated ABC and EVA, and the calculated costs are compared.

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