عنوان مقاله [English]
نویسندگان [English]چکیده [English]
There are several criticisms on traditional performance appraisal criterions because of not considering "Cost of Capital" and using traditional accounting methods and roles. Alternatively, economic value added and other modem performance appraisal criterions imply cost of capital to provide a better estimation of added values.
The relationship between these traditional criterions such as "Return on Investments" and "Return on Equity" with "Economic Value Added" as a modern criterion has been evaluated throughout this research. In addition, it has been discussed how traditional measurements can adapt with economic value added and how their developments can augment economic value added.
As a result of the few numbers of Iranian insurance companies we have exploited society and assessed eighteen active insurance companies of Iran during 2006-2009. Also we used "Rate of Return on Capital" instead of economic value added. Economic value added is based on the excess amount of money that a company earns on the capital employed. Therefore, comparing it with relative ratios is not reliable.
Adjustments of economic value added have been applied based on standard adjustment of economic value added and Iranian insurance companies accounting principles.
The research finds that there is a significant relationship between return on investment and economic valued added. Also there is a significant relationship between return on equity and return on economic value added. In addition the relationship between ROE-RROC is more significant than ROI-RROC.