An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Alan Reinstein
Wayne State University

Gerald Lander
University of South Florida

Abstract: As a result of recent problems with corporate reporting and management, renewed interest in Corporate Governance has arisen. We analyze economic value alignment as a form of Corporate Governance, a concept similar to but more encompassing than economic value added and value based management. Economic value alignment (EVA) is based on economic value added analysis. Management philosophy dictates that users apply economic value added analysis at every aspect of the company, thereby enhancing the overall value to shareholders. We look at some specific ways that various companies and industries have applied economic value added analysis. We further look at a study of a group of companies who have used economic value alignment as a management philosophy and compare them to a group that has not used it. The results show that the companies that use economic value alignment increase their value significantly over those that do not. The results show that discriminating investors and manag

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