The institutions seek to improve their performance and survival, achieve their goals, develop their investment capabilities, and improve their competitive position. By absorbing external changes and predicting future changes, to correct their performance and evaluate the financial performance of the institution in preparation for its improvement. The problem is that accounting thought regards profit as the only criterion adopted in measuring financial performance, leading to a trend to maximize profitability. In addition, all well-known performance measures have become ineffective, as they focus on results without the causes. While the added economic value reflects the company's future growth, it is a more comprehensive measure of performance than traditional performance measures. The research aims to discuss financial performance, its indicators and factors affecting it, methods of measuring and evaluating financial performance, and finally financial performance obstacles. In addition to the concept of added value and its ability to achieve value and defining the role of modified added value in improving financial performance. Analysis of the economic advantage of economic added value. Through the descriptive analytical approach, the topic was discussed in two topics, and the research reached the following results: A set of challenges that weaken and stop the effectiveness of financial performance and prevent the achievement of goals and functions of financial performance. These obstacles relate to performance information, wrong decisions in light of that information, and inadequate evaluation methods for the size of financial work and its plans. The added financial value helps in calculating the overall performance of the institution and gives way to make comparisons in performance over the years and according to expectations, as it is used in calculating the financial returns for each unit to identify the financial performance.