Can the Economic Value Added Be Used as the Universal Financial Metric?

Previous research into Economic Value Added (EVA) has extensively described it as a
business metric of firms. Still, no studies have confirmed or denied that EVA is a universal metric and
that one may use EVA in unstable markets in the same way as in stable and developed economies.
Meanwhile, the green energy revolution, ensuring carbon neutrality through green innovations,
requires enormous investments, and the projects realised must be appropriately tailored. These
projects are realised by different firms, including those from developing countries, and investors need
solid financial metrics. The study determines whether EVA is a universal metric of owners’ value in
the energy sector. The research proves that this metric does not correctly reflect the limitations of
emerging markets, can lead to incorrect managerial decisions and limit shareholders’ value. Therefore,
there is a need to reanalyse financial metrics used in financial planning, including EVA. The study
eliminates this research gap and, based on data from seven countries and the Euro Zone, explains why
one may not perceive the currently used EVA formula as a universal financial metric. Consequently,
the study modifies the EVA formula and presents a universal solution tailored to unstable economies.
In the conducted research, literature studies were used, taking into account the methodology of a
systematic literature review, including bibliometric analysis. Based on this review, it is shown that
little is known about whether EVA as a financial measure can be used in energy management. Two
conclusions emerged: first, the research contributes to developing the business and management
science; second, identifying risks associated with EVA metrics helps practitioners. In addition,
the study defined further research directions.