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 450
- Downloads 31
THE TESTING OF HALL’S PERMANENT INCOME HYPOTHESIS: A CASE STUDY OF PAKISTAN
The objective of this study is to test the Hall’s permanent income hypothesis for Pakistan using annual data from 1992 to 2010. The basic model of permanent income hypothesis (PIH) showed the validity of absolute income...
AN ANALYSIS OF DEMAND AND PERFORMANCE OF POLYTECHNIC PASS-OUTS: A CASE STUDY OF INDUSTRIAL ESTATE JAMRUD ROAD PESHAWAR
In Pakistan, Six to ten percent of matriculate students seek admission in technical institutions while the required number for a country to be on the track of progress is seventy percent. In Khyber Pakhtunkhwa, on the av...
SAVINGS, FOREIGN DIRECT INVESTMENT INFLOWS AND ECONOMIC GROWTH IN EMERGING ASIAN ECONOMIES
Saving rate is one of the important elements of all the theories of economic growth and foreign direct investment inflows also became an important determinant of economic growth together with the globalization process as...
Energy Consumption and Economic Growth: A Disaggregate Approach
This paper attempts to examine the long run as well as short run relationship between Pakistan’s real GDP and energy consumption at sectoral level. The analysis is based on the time series data from 1977 to 2010. We esti...
DEVELOPING AN EARLY WARNING SYSTEM FOR FINANCIAL CRISES IN VIETNAM
In this paper, we develop an applicable early warning model that can predict financial crises for Vietnam. To achieve this goal, we analyze and extend the existing early warning models which have been developed by Kamins...