An Empirical Study on the Value Relevance of Economic Value Added in Logistics

Motivated by the increased use and interest, we examine the value relevance of economic value added (EVA) based on sample of Chinese logistics. Empirical evidence supports significant incremental information content of EVA compared with traditional performance measures, but the incremental information is not sufficient enough to support EVA dominating them. Nevertheless, the significant coefficients of the components of EVA give strong support for the application of EVA in logistics. So, logistics enterprises should include EVA in their evaluation system to reflect the real wealth creation for shareholders, while traditional measures still in use at the same time.