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ce the shareholders’ value; select the strategy and the organizational design which consistent the selected target; determine the particular performance variables which could create value in the process of operating under the selected organizational strategy (i.e. the value derive); under the basis of the determination of the different priority which relate to the analysis of the value derive, formulating the action plan, selecting performance measurement indicators and setting specific goals; evaluating whether the implementation of action plan is successful or not and evaluating the organization and management performance; evaluating the internal goals, strategy, plan and the efficiency of the control system of the organization and also modification which is based on the present result (Ittner and Larcker, 2001).

The above framework of value based management could be seen as an abstract of the interdependence, the simultaneous choices and the feedback loop of the complex practice. However, it has provided a useful mechanism which classifies the empirical research of the management accounting and evaluates the support level of empirical research for the relationship of the normative framework of value based management. More importantly, this framework grasps the relationship between contingency theory, agent model and the organizational design framework of the economic-based. The each step of the framework will be shown in the following part.

The selective of organizational goals

A basic hypothesis of the research of management accounting is that providing enough information and control mechanism for achieve the organizational goals. But, the selection of organizational goals outside the scope of the research of management accounting traditionally, this situation has changed following the foundation of value based management approach. Many proponents of value based management suggested that the main purpose of organizations must be elaborated from the “economic value” indicators, by what the internal goals and the objectives of maximizing shareholders’ value will be better fitted (Copeland etc. 1996). The basis of this point indicated that the changing of the indicators of economic value is better reflects than the changing of shareholders’ value. Therefore, it could be replaced by the goal setting, the capital budget or the compensation plan. According to Anctil (1996), the coherence of the interest of principle and agent only could be ensured when use the EVA and other indicators of residual income as the targets of organizations. The empirical researches of the field concentrate into two respects: Firstly, whether the added economic value equaling to the income indicators is more relevant with the company’s value than the traditional accounting indicators? Secondly, whether the enterprises which use the added economic value as the return indicators create more value than other enterprises?

By test the simple single-variable of the research of the relationship between market indicators and the EVA, researchers found that compare with the accounting return, the free cash flow and other traditional indicators the EVA indicator is more relevant than the market value added (Milunovich and Tseui, 1996). According to O’Byrne’s (1996) research, h本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。