The added value of pricing with an economic approach

Document Type : Original Article

Authors

1 Master of Business Administration, Ferdowsi University of Mashhad, Mashhad, Iran

2 Master of Business Administration, Islamic Azad University, Torbet Heydarieh Branch, Torbet Heydarieh, Iran

Abstract

controls This index expresses the challenges faced by companies in the field of financial performance measurement. Economic added value expresses economic profitability by measuring profit after deducting the expected return of shareholders. The current research is practical in terms of its purpose, and in terms of variable relationships and data collection, it is review-narrative. The statistical population of the current research includes all the articles, sites and books available in relation to economic added value, the study of previous articles and the use of secondary data. The sampling method is purposeful. The results show that economic added value is the best performance evaluation measure and it is the value that is created in the process of producing a product or providing a service. Also, the main goal of every organization is to create value for the owners, and the goal of investors to invest in a company is to get a return commensurate with their investment. If the company or organization is successful in creating value, not only the investors and insiders of the companies, but also the wider society will benefit from this value creation.

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