If a corporation's economic value added is negative,stockholders will probably be displeased with the company's management.

Question

Quizplus · Accepted Answer

A negative economic value added suggests that the company is not generating enough returns to cover the cost of capital, which means that the company is not creating value for its shareholders. Therefore, shareholders are likely to be unhappy with the company's management.

If a Corporation's Economic Value Added Is Negative,stockholders Will Probably