A variety of studies has appeared in response to the need for value based performance measurement during the last two decades. These research papers are devoted to the empirical testing of economic value added (EVA) in comparison with other conventional accounting measures. Although the geography of the studies is covering more and more emerging markets – Brazil (Medeiros), Portugal (Peixoto), India (Ramana), Australia (West & Worthington (2004)) – economic value valuation hypothesis still hasn’t been tested on the CIS and Russian data.

Therefore the purpose of the study involves testing the relationship between economic profit valuation and market capitalization in emerging markets, value creation potential as measured by EVA and its perspectives to become the leading performance measurer in large-scale and medium-scale companies in Russia.  The results of the study will allow to estimate information content of EVA and to provide an insight into EVA application in an alternative institutional environment.  The project will contribute to the detailed analysis of the dynamics and industrial structure of economic profit in Russian firms  and a number of emerging markets and to the comparison of the results for Russian companies with those for the other countries of emerging markets. 

The extension of the research will be done to determine  economic profit-based rating of Russian companies. We should point out there are no such studies regarding Russian companies to date. Such study will help investors to range the investment opportunities in terms of economic profit per 1 dollar invested.