Economic added value of company performance measurement: an application on cement sector companies traded in BIST 100

The first condition to manage is to measure. In the cement sector, the locomotive sector of the Turkish Economy, the importance of measuring the financial performance of companies has increased in recent years. The most important reason for this is shareholder expectations. Because of these reasons, classical measurement methods, which usually measure the performance of the firm, have begun to lose their validity. Instead, methods that doesn't ignore shareholder expectations and measure value have been developed. Some of the value-based measurement method can be summarized as Cash Value Added, Cash Flow Return, Adjusted Economic Value Added, Shareholder Value Added, Balanced Scorecard, and Economic Value Added. Especially the economic value added method has become very popular due to its easy use in the past years. Basically economic value added method can be defined as the difference between the cost of a capital invested by a firm and the profit from that activity. The purpose of this study is to investigate the development, theory and feasibility of the Economic Value Added method that measures financial performance. In the application section, the economic value added of the cement sector companies, which constitute the basic building block of the construction sector and traded in the BİST 100, has been calculated.