The paper gives a general reviewof the theoretical and empirical study on economic value added (EVA) . EVA is a managerial performance measure based upon the residual income concept and has been widely used in cor2 porate managerial practice. In this paper , the definition of EVA was introduced , and the goal congruence that EVA aims to achieve as a performance measure was discussed theoretically. Then we commented on the validity of EVA derived from the results of the empirical researches , and finally gave a prospect on the further study in this field.