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This longitudinal study investigated the managerial effectiveness of the “Magnificent Seven” stock firms in enhancing Economic Value Added (EVA) before and after the COVID-19 pandemic. Utilizing a within-subject ANOVA analysis on data spanning from 2016 to 2023, this research aimed to explore how managerial decisions within these firms influenced economic profits over time. The study utilized the Stern-Stewart formula for EVA to calculate the average EVA data from 10-K filings of these technology-oriented firms, representing a significant portion of the S&P 500 index, to determine the impact of the COVID-19 pandemic on their financial performance. Results indicated a large significant effect difference in EVA pre- and post-COVID-19 pandemic, with an increase in both the mean value and variability of EVA. The partial eta squared value indicated that the time period accounted for approximately 26.4% of the variance in EVA. This suggested that the COVID-19 pandemic had a significant impact on these firms’ EVA, reflecting positively on their managerial decision-making effectiveness in creating economic value. The conclusion highlighted the importance of management efficiency key decisions included leveraging artificial intelligence, maintaining operational agility to mitigate supply chain disruptions, and fostering a culture of innovation in navigating the complexities introduced by the pandemic. It underscored the significant role of external factors such as consumer behavior changes and government policies in influencing company performance. The study recommended exploring how different sectors responded to the pandemic’s challenges, particularly those hit hardest by the crisis. This study contributed to the understanding of EVA as a reliable measure of a company’s financial health and managerial effectiveness in uncertain times.

Value-added performance measures, such as economic value added (EVA), are promoted as a means to better align managerial incentives and improve firm performance. This paper empirically examines whether EVA adopters outperform a peer group of non-adopters over a long term horizon. It also explores the determinants associated with differences in relative market performance of these two groups. We find mixed results consistent with previous studies. In examining risk adjusted market returns, we find that the full sample significantly underperforms the market. However, during the period of the study, EVA adopters exhibit less negative performance than non-adopters. Moreover, over the entire study period, adopter performance improves in a positive direction, while non-adopters experience a performance decline. Adopting firms also exhibit higher earnings growth and higher returns. In perspective, these results suggest there is some benefit to EVA adoption, relative to a peer group, as adopters outperform their peer group. In a comparison of peer matched groups, firm size and growth opportunities are found to have a significant impact on performance for three size-based groups.