EVA VERSUS OTHER PERFORMANCE MEASURES
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 4
Abstract
Create value not only intended to satisfy shareholders. This is also the way to ensure the ability of the company to ensure its sustainability and finance its growth. The company will not attract new capital if it destroys value. "The concept of value creation is none other than the intersection of strategy (create value) and technique (evaluate the company)"(Powilewicz, 2002). The basic idea behind the different measures of value creation by a company is that a company creates value for its shareholders when the return on capital exceeds the cost of different sources financing used or the cost of capital. We are interested in analyzing the difference between EVA and other measures of performance in explaining on firm value on a sample of 82 French firms that compose the SBF 250 indexes, from 1999 to 2005. Thus, we have noticed that the CF is the best measure of performance followed by BN, BR and EVA. Hence, the finding of Stern Stewart, of the supremacy of the EVA is not confirmed in our context.
Authors and Affiliations
Hechmi Soumaya| The Faculty of the Economic sciences and Management of Nabeul, Tunisia. Avenue Taieb Mhiri, TUNISIA
Keywords
Related Articles
- EP ID EP1906
- DOI -
- Views 486
- Downloads 31
FACTORS INFLUENCING THE BANK PROFITABILITY – EMPIRICAL EVIDENCE FROM ALBANIA
Commercial banks have a crucial role for the allocation of economic resource in countries. Their main contribution is in the economic growth of the country through making available the funds for investors to borrow as we...
EXPLORE THE IMPACT OF THE TRADING VALUE , THE OIL PRICE AND QUANTITATIVE EASING POLICY ON THE TAIWAN AND KOREA STOCK MARKET RETURN WITH QUANTILE REGRESSION
This paper aims to apply the quantile regression analysis to explore the impacts of the stock market trading value, change in international oil prices, and the US implementation of Quantitative easing monetary policy on...
AN EARLY WARNING SYSTEM FOR TURKEY: THE FORECASTING OF ECONOMIC CRISIS BY USING THE ARTIFICIAL NEURAL NETWORKS
An economic crisis is typically a rare kind of an event but it impedes monetary stability, fiscal stability, financial stability, price stability, and sustainable economic development when it appears. Economic crises hav...
MONETARY POLICY AND THE BEHAVIOR OF A MONOPOLISTIC BANK: A THEORETICAL APPROACH
This paper investigates the influence of monetary policy on the optimal behavior of a monopolistic bank. More specifically, we discuss how the overdraft rate and the minimum reserve requirements affect the equilibrium va...
EXCHANGE RATE VOLATILITY AND BANK PERFORMANCE IN NIGERIA
This study investigated the impact of unstable exchange rate on bank performance in Nigeria using two proxies for bank performance, namely loan loss to total advances ratio and capital deposit ratio. Government expenditu...