Is REVA a Better Predictor of Shareholders' Value? A Study of Pakistani Listed Cement Companies
Journal Title: International Journal of Economics, Commerce and Research (IJECR) - Year 2018, Vol 8, Issue 2
Abstract
The effectiveness of traditional methods of measuring organizational financial performance is least in practice. Theorists have put forward contemporary financial performance measures but their significance is still under discussion by the researchers.So, the significance of modern techniques is under discussion by the researchers. In this study, the relative significance of modern measures of financial performance like REVA and EVA and traditional accounting-based measures is undergone for the cement sector of Pakistan using data from 2006 to 2014. After using descriptive statistics, correlation analysis, and regression estimation technique and correlation analysis, the conclusion resultsindicates the irrelevance of ROE, ROA,and EPS as measures of financial performance while EVA as a modern measure was found to have a significant link with the long-term organizational performance. Lastly, REVA was also found astheinsignificant and therefore irrelevant performance measure.However, thea relative explanatory power of EVA is also weak implying that future investigations in this domain of knowledge should be considered with a view to explain long-term value of the organizations
Authors and Affiliations
YASIR ASHRAF
Keywords
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- EP ID EP343893
- DOI 10.24247/ijecrapr20181
- Views 106
- Downloads 0
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