International Journal of Business and Management Review (IJBMR)

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Assess the Performance of Congolese Organizations Converted to Commercial Businesses using the Economic Value Added Approach

Abstract

This study aims to demonstrate the significance of assessing corporate success in terms of economic value added (EVA). Economic value added is widely recognized as a reliable metric for assessing the performance of private firms. Four organizations were chosen, and their performance was assessed using the EVA approach from 2016 through 2022. The following outcomes were found as a consequence of the analysis: National Electric Company (NEC), Congo National Railway Company (NRCC), and Port Transportation Company (CCPT). A positive EVA, on the other hand, represents value creation for a Water Distribution Company (WDC). Endogenous variables such as the steady fall in factor returns to labor, poor operating performance, and low capital profitability cause value destruction. Yet, ethics and openness are essential for attaining success. Corporate success in terms of economic value added (EVA). Economic value added is widely recognized as a reliable metric for assessing the performance of private firms. Four organizations were chosen, and their performance was assessed using the EVA approach from 2016 through 2021. The following outcomes were found as a consequence of the analysis: National Electric Company (NEC), Congo National Railway Company (NRCC), and Port Transportation Company (CCPT). A positive EVA, on the other hand, represents value creation for a Water Distribution Company (WDC). Endogenous variables such as the steady fall in factor returns to labor, poor operating performance, and low capital profitability cause value destruction. Yet, ethics and openness are essential for attaining success.

Keywords: Economic Analysis, Transportation, commercial business, economic value

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ijbmr@ea-journals.org
Impact Factor: 8.72
Print ISSN: 2052-6393
Online ISSN: 2052-6407
DOI: https://doi.org/10.37745/ijbmr.2013

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