EVA and DEA, which is better in reflecting the capital efficiency?

Abstract

Traditionally, people generally believe Economic Value Added (EVA) is one of the best indicators to evaluate capital efficiency of companies. This paper attempts to use Data Envelopment Analysis (DEA) in evaluating the efficiency of capital, and by comparing the samples and conclusions of DEA with those of EVA, it is found that DEA is a better way to reflect the capital efficiency. The two-stage analysis-principal component analysis and Data Envelopment Analysis in this paper provide new ideas for studying capital efficiency of companies. © 2012 Springer-Verlag GmbH Berlin Heidelberg.