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Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The study investigates the impact of a post-merger integration capability (hereinafter PMIC) on shareholder value added (hereinafter SVA) of acquirer banks listed on the Ghana Stock Exchange (hereinafter GSE). The study used panel data techniques of random effects, fixed effects estimation and generalised method of moments (GMM) to purge time-invariant unobserved firm specific effects and to mitigate potential endogeneity problems. The study indicated that PMIC (proxied by strategic, communication, coordination and network, marketing, technology, knowledge management, human capital, intellectual capital, managerial and information technology capabilities) have positive and significant influence on SVA (proxied by Economic Value Added, Market Value Added and Cash Value Added). The results further show that bank size, bank age, bank growth and leverage moderate the relationship between PMIC and SVA. The study recommends that banks analyse their organisational capabilities and firm size prior to any business expansion decision (organic or inorganic). [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to determine if there is a link between corporate shareholder value creation and economic growth. The first objective of this paper is to determine which specific shareholder value measurement best explains shareholder value creation for a particular industry. The next objective of the study is to establish, for each of nine different categories of firms examined, a set of value drivers that are unique and significant in expressing shareholder value for that particular category of firms. Lastly, the relationship between shareholder value creation and economic growth is tested. Design/methodology/approach: To quantify and measure value creation, the paper investigates the various value creation measurements that are being applied. The next step is to ascertain whether various industries have different value creation measures that best explain value creation for the respective industries. Then, the value drivers of these specific value creation measures can be determined and their relationship with economic growth tested. Findings: The results of this study indicate that each industry does have a specific shareholder value creation measurement that best explains shareholder value creation for that industry; for example, for five of the nine categories (industries) that were analyzed, market value added was found to be the best shareholder value creation measurement, but for capital-intensive firms and manufacturing firms, the Qratio is the best measure, while for the food and beverage industry, the market to book ratio was found to be a better measure of shareholder value creation than other measures tested. It was further found that an increase in corporate shareholder value creation is to the detriment of economic growth. Originality/value: The contribution of the present study is its determination of a unique shareholder value creation measurement for particular industries. In addition, a specific set of variables per industry that create shareholder value is identified. Lastly, the important link between shareholder value creation and economic growth is exposed. [ABSTRACT FROM AUTHOR]

Copyright of Revista Electrónica de Investigación en Ciencias Económicas (REICE) is the property of REICE: Revista Electronica de Investigacion en Ciencias Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Investors invest money in different financial instruments to get a return on investment. Every investor is deliberate to know the proper time to enter the market which would help the investor to get the maximum return from the invested amount. Selecting the right stock for the investment is based on the interpretation and analysis applied for value of the stock. The fundamental value of the stock is useful for the investor to analyse the intrinsic value of the stock. The intrinsic value of stock determines the investors whether stock is undervalued or overvalued stock. There is different model for fundamental value analysis model like economic value added, market value added and intrinsic value of the stock. Economic value-added models are used for the financial performance measurement tools which analyse how much wealth the company had created to the investors after deducting the net operating profit and cost of capital. Market value added is a measure of wealth a company has created for its investors. It is a cumulative measure of corporate performance that looks at how much a company's stock has added to (or taken out of) investors. The intrinsic value model is the worth of the shares as measured by their returngenerating potential. The research aims to analyse the intrinsic value of the stock based on the residual income model, one stage model and market valueadded model. [ABSTRACT FROM AUTHOR]

The purpose of this article is to examine the academic literature about the function, structure, calculation, and weaknesses of economic value added (EVA). EVA has been used as a measure of economic profit and captures the inadequacies of using traditional rates of return. In addition, this article tackles the main residual earnings (RI) modifications used to calculate EVA. A keyword search for publications was conducted in early 2022. This study couples an inferential analysis with descriptive analyses of the existing research. The articles were sorted into different clusters based on bibliographic coupling analysis. This study identifies the main areas and current dynamics of EVA research while evaluating the quality and impact of the scientific output. Three broad themes emerged from the analysis of the cluster related to the use and application of EVA: residual income and valuation, financial performance, and performance management. In doing so, we hope to enhance the understanding and contributions of EVA research to advance its theory and practice. [ABSTRACT FROM AUTHOR]

Stock price movements are interesting to discuss, because from these price movements investors will get capital gains. Problems arose, however, when Covid-19 hit the world, especially in Indonesia. The purpose of this study, then, is to determine whether there is a relationship and difference in return and risk between Economic Value Added (EVA) and Market Value added (MVA) portfolios in the Indonesian stock market. The sample used is 24 stocks with daily stock return data for the 2015-2020 period. The results of the study found something new, namely that there was a relationship and difference between returns and risks in the EVA and MVA portfolios in Indonesia. In addition, the research succeeded in forming EVA and MVA portfolios that exceeded market returns in Indonesia. The best strategy that investors can apply in investing is to use an active strategy, especially during conditions, such as the Covid-19 pandemic, which have an impact on high market fluctuation. [ABSTRACT FROM AUTHOR]

The purpose of this study is to find out the effect of return on investment, earning per share, operational cash flow, economic value added, and market value added towards the stock return at manufacturing companies in Indonesia Stock Exchange. The population of this study was the all manufacturing industry registered at Indonesia Stock Exchange which was studied from 2005 to 2011. The method used to determine samples was using purposive sampling method with some fixed criteria with the total number of 11 samples of manufacture companies. The data used was secondary data which was obtained Indonesia Stock Exchange (www.idx.co.id) and also from Indonesia Capital Market Directory from 2005 up to 2010. To answer the problems of the study and to test the research hypothesis, multiple regression was used together with the application of Statistical Product and Service Solutions (SPSS). The result of this study shows that 1) Return on investment has insignificant influence towards stock return, 2) Earning per share insignificant influence towards stock return, 3) Operational cash flow has a negative and significant influence towards stock return, 4) EVA has a positive and significant influence towards stock, 5) MVA has insignificant influence towards stock. The result showed that the Economic value added and Operational cash flow has a significant towards stock return. Therefore, Economic value added and Operational cash flow should be become consideration substance for investor in making stock investment decision. The insignificant of Return on investment, Earning per share, and Market value added towards stock return, can be a suggestion to do more research with longer duration of observation and also included all sectors in Indonesia Stock Exchange.

This study aimed to analyze the relationship between CEO compensation and value creation in Brazilian companies listed on the IBRX 100. To this end, the concept of value creation was considered through the use of measures that incorporate the opportunity cost companies, namely: Economic Value Added (EVA) and Market Value Added (MVA). The period under analysis was from 2015 to 2019, with a sample of 75 companies. To test the hypotheses, we used multiple linear regression models, estimated by the System Generalized Method of Moments. The results indicate that EVA and MVA impact the decision to increase or decrease CEO compensation. Therefore, the findings of this research may indicate an alignment between the compensation policy of the companies analyzed and the value creation of organizations, alleviating the conflicts of interest between agent and principal. [ABSTRACT FROM AUTHOR]

Este estudo teve como objetivo analisar a relação entre a remuneração dos CEOs e a criação de valor em empresas brasileiras listadas no IBRX 100. Para tal, contemplou-se o conceito de criação de valor a partir da utilização de medidas que incorporam o custo de oportunidade das empresas, quais sejam: Economic Value Added (EVA) e Market Value Added (MVA). O período em análise foi de 2015 a 2019, com uma amostra de 75 empresas. Para testar as hipóteses, utilizaram-se modelos de regressão linear múltipla, estimados pelo Método dos Momentos Generalizado Sistêmico. Os resultados indicam que o EVA e o MVA impactam na decisão de aumentar ou diminuir a remuneração dos CEOs. Portanto, os achados desta pesquisa podem indicar um alinhamento entre a política de remuneração das empresas analisadas e a criação de valor das organizações, amenizando os conflitos de interesse entre agente e principal.

The purpose of this article is to examine the academic literature about the function, structure, calculation, and weaknesses of economic value added (EVA). EVA has been used as a measure of economic profit and captures the inadequacies of using traditional rates of return. In addition, this article tackles the main residual earnings (RI) modifications used to calculate EVA. A keyword search for publications was conducted in early 2022. This study couples an inferential analysis with descriptive analyses of the existing research. The articles were sorted into different clusters based on bibliographic coupling analysis. This study identifies the main areas and current dynamics of EVA research while evaluating the quality and impact of the scientific output. Three broad themes emerged from the analysis of the cluster related to the use and application of EVA: residual income and valuation, financial performance, and performance management. In doing so, we hope to enhance the understanding and contributions of EVA research to advance its theory and practice.

Copyright of Journal of Management & Economics Research is the property of Journal of Management & Economics Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article aimed to evaluate the financial performance of the alcoholic beverages sector in Colombia for the 2014-2018 period, following, as a methodology, the static and trend analysis of accounting and economic value-added indicators that measure its growth, efficiency, efficacy, and effectiveness. It was observed that this sector grew, and generated accounting returns that fluctuated in the first three years, and then rose, following the guidance of cost and expense control efficacy, which was augmented by positive financial leverage. In addition, it was discovered that this sector created added economic value (EVA) every year because the return on net operating assets was higher than the cost of capital, leaving a residual profit margin. These findings could be complemented by similar studies for homogeneous groups in size, age, and geographical area. [ABSTRACT FROM AUTHOR]

Economic value added (EVA) is a performance measure developed by Stern Stewart & Co.) that attempts to measure the true economic profit produced by a company. Such a metric is useful for investors who wish to determine how well a company has produced value for its investors, and it can be compared against the company's peers for a quick analysis of how well the company is operating in its industry. Market value added (MVA), on the other hand, is simply the difference between the current total market value of a company and the capital contributed by investors (including both shareholders and bondholders). It is typically used for companies that are larger and publicly-traded. MVA is not a performance metric like EVA, but instead is a wealth metric, measuring the level of value a company has accumulated over time. In order to maximise the value for shareholders, companies should strive towards maximising MVA and not necessarily their total market value. It is believed, that the best way to do so is to maximize EVA, which reflects a company’s ability to earn returns above the cost of capital. The leverage available to companies that incur fixed costs and use borrowed capital with a fixed interest charge has been known and quantified by financial managers for some time. In this research the effect of leverage and EVA on MVA as the measure of shareholder wealth creation was analysed. Leverage and EVA have been used as the independent variables whereas MVA has been used as the measure of shareholder wealth creation. Correlation and regression methods have been employed to find out in what way financial managers can practice the effects of leverage and EVA to maximize MVA. The results showed that EVA and leverage have no profound impact on MVA of the selected Slovak companies

This study aims to analyze the effect of Economic Value Added on Tobin Q with Market Value added as intervening variable. The sample of this research is a manufacturing company listed on Indonesia Stock Exchange in 2011-2016. Data analysis using regression analysis. The results showed that Economic Value Added did not affect Tobin Q and Market Value added (MVA) effect on Tobin Q. Market Value Added (MVA) did not become intervening variable between EVA and Tobin Q. Market Value added are not mediate Economic Value Added to Tobin Q

This paper examines the effect of Market Performance and Dividend Policy of listed manufacturing firms in Nigeria. Market performance was proxied by Economic Value Added (EVA), Market Value Added (MVA), Total Shareholders Return (TSR) and Tobin's Q, while dividend policy is represented by Dividend payout (DPO). The study adopted expost facto research design and multiple regression was used in order to establish the nature and degree of the relationship between the variables under consideration. The study found a positively significant relationship between total shareholders return (TSR) and dividend payout of listed manufacturing firms in Nigeria whilst Tobin's Q revealed positively insignificant effect on dividend payout of listed manufacturing firms in Nigeria. On the other hand, economic value added (EVA) and market value added (MVA) revealed negatively significant relationship on dividend payout of the firms. Therefore, it is recommended among others that management of manufacturing firms in Nigeria should try to improve their market performance by ensuring that the company invest in projects that would yield positive return in order to attract more investors and consequently better value for the firm. [ABSTRACT FROM AUTHOR]

The main aim of this paper is to know the superior impact of economic value added (EVA) or traditional accounting measures (i.e. return on assets and earning per share) for value maximisation. Market value added (MVA) is used as an indicator to test the impact and relationship with these variables. The study considers 190 listed companies selected from BSE (A Group). The study used fixed effects and random effects model as well as the Hasuman test to find out the appropriate model for the study. This study also used ordinary least squares regression as well as simple linear regression to know the impact. The study also used correlation to measure the relationship between EVA, selected traditional accounting measures and controlled variables on MVA. The study finds no evidence in support of EVA as a superior indicator for value creation than traditional accounting measures. The study reveals that it is better to measure financial performance through traditional accounting measures than EVA. The study is useful to the managers who are in the process of maximizing the wealth of shareholders' as well as to the investors for a sound investment decision. The study is useful to all the stakeholders' who require financial results of the companies for various purpose. This study covers the required controlled variables and relates to the MVA with financial measures. [ABSTRACT FROM AUTHOR]

Economic Value Added (EVA) is one of the most important modern performance measures. The main difference between EVA and traditional measures is that EVA incorporates both financing costs of debt and equity capital. In addition, EVA includes adjustments that minimize some accounting distortions. EVA and Market Value Added (MVA) provide a more accurate evaluation of the firm’s financial performance. This paper involves a case study that analysis the use of EVA in selected Slovak companies. It examines the incremental information of a set of performance measures in the time period of 2010 - 2015, using regression models. Furthermore, we analyse the MVA performance and the relationship between EVA and MVA.

Copyright of Dilemas Contemporáneos: Educación, Política y Valores is the property of Dilemas Contemporaneos: Educacion, Politica y Valores and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study determined the extent to which capital expenditure decisions made by listed manufacturing companies in Nigeria relate with the value of the firms in the long term. The ex post facto and correlational research designs were adopted for the study. Secondary data were extracted from the Nigerian Stock Exchange Fact Books for the period, 2010 - 2016. The number of manufacturing companies listed in the Stock Exchange during this period was 83, and the sample size used was 69. With the aid of regression analyses, the findings revealed that capital expenditure decisions had a significant relationship with long term value of manufacturing firms. The study concluded that capital expenditure decisions have a significant relationship with the long term value of manufacturing firms in Nigeria. It was recommended that management of manufacturing companies should ensure the holistic use of all techniques, exploring risks, real and growth options analyses as well as portfolio management techniques involving capital assets, in appraising capital investments before taking decisions. [ABSTRACT FROM AUTHOR]

This study investigates if Economic Value Added (EVA) is superior to Net Operating Profit after Tax (NOPAT) and Net Cash Flow (NCF) in explaining the change in the Market Value Added (MVA) of the non-financial firms listed on Amman Stock Exchange (ASE) for the year 2016. The results indicated that NCF has the strongest power in explaining the change in MVA, followed by EVA. The results also indicated that the NOPAT does not add any additional significant explanatory power to NCF and EVA in explaining the change in MVA. Finally, this study recommends the use of EVA as an enhancement tool to the existing traditional accounting performance measures, not as a substitute to them. [ABSTRACT FROM AUTHOR]

The primary objective of this research is to investigate the relationship between tax avoidance, income and cash held in companies listed on the Tehran Stock Exchange from 2009 to 2013. In this regard, avoidance of paying taxes is independent variables and criteria for evaluating financial performance; namely return on assets, return on average equities, economic value added, market value added, and the ratio of free cash flow are considered as dependent variables. Firm size and financial leverage are also considered as control variables. In general, the statistical method used in this research is correlation and regression. The results of the research showed that there was a significant and reverse relationship between avoidance of paying taxes and performance evaluation criteria, cash held.

In this study, the relationship between corporate governance mechanisms (ownership concentration, institutional ownership, CEO duality, the size of the Board and kind of auditor) with value-based financial performance measures (market value added (MVA), economic value added (EVA), cash value added (CVA)) is investigated. The statistical population is composed of listed companies in Tehran Stock Exchange and the sample of study was selected using random sampling including 101 firms for the period 2006 to 2011. The hypotheses were examined by multiple panel regression methods and research hypotheses were estimated in three separate models. The results of market value added model show that there is a significant negative relationship between ownership concentration, CEO duality and kind of audit mechanisms with market value added, while no relationship was found between institutional ownership and size of the board with market value added. EVA model results indicate a significant negative relationship between ownership concentration and CEO duality task with economic value added. In this model, no significant relationship was found between the measures of institutional ownership, size of the board and type of audit with economic value added. An examination of cash value added model indicates that there seems a positive relationship between ownership concentration, institutional ownership and the size of the Board with cash value added while there is no relationship between CEO duality and cash value added.

The financial theory developed different categories of indicators - traditional and modern - in order to evaluate the firm’s value creation. The shareholders are directly interested by the value added in the company. The value creation is a complex process that implies correct decisions, common responsibility (managers and shareholders) and actions towards an efficient and profitable activity. The traditional indicators of performance are not teoritically correlated with the the value creation and in these circumstances, should be used appropriate financial indicators in order to reflect the value of the company. Therefore, the modern indicators used in the value based management framework offer a greater flexibility and efficiency and represent a good alternative for companies. Such performance indicators used to measure the financial results correlated with shareholder wealth are the Economic Value Added (EVA), as a measure of internal performance and the Market Value Added (MVA) as a measure of external performance of the company. Starting from the main deficiencies of the accounting indicators, the objective of this this study is to present the relationship between EVA and MVA and their implications on firms’valuation. Thus, the presentation and analysis of these indicators – EVA and MVA - will underline the main features, their correlations, and influence factors but also the main advantage and disadvantage of each indicator, which will enable the managers to make the correct choice and subsequently the best decision regarding the performance measures.

The paper empirically explores on the potential of economic value added (EVA), a value-based performance benchmark as an option to conventional earnings measures, with focus on two Asian emerging economies: India and China. Panel regression method has been adopted to compare the significance of EVA over return on equity (ROE), return on capital employed (ROCE) and earnings per share (EPS), in explaining and forecasting market value added (MVA), a proxy for shareholders’ wealth creation. The research uses data spanning 15 years (2002-2016) of 260 Indian and 254 Chinese non-finance companies. Moreover, the regression models are first estimated in-sample period (2002-2011) and then tested for predictability over the period 2012-2016 (out-of-sample period). The results indicate a positive and significant relationship between EVA and MVA, next only to ROCE, with an ability to forecast MVA for India. In contrast, EVA does not emerge as a consequential performance measure with EPS dominating the performance measurement space for China. Notwithstanding, EVA in conjunction with ROCE provides incremental explanation to variations in MVA for Chinese firms. Further, the study highlights the negative relationship of EVA with the value creation by Chinese firms, in spite of the fact that China has witnessed a substantially higher annual GDP growth rate over the period 2002-2014, in comparison with India, one of the plausible reasons that it is now observing a slowdown. In sum, EVA depicts a more credible picture of the industrial contribution in the economic growth of India and China. [ABSTRACT FROM AUTHOR]

This study aims to find the effect relationship between both economic value added and market value added as new measures for evaluation the performance and earning per share compared with return on assets and return on equity, through application on industrial companies listed in Kuwait stock exchange(28 companies) during period 2012-2016. With used the multiple regression model and the statistical program(spss). The study concluded a strong effect relationship and statistically significant between both all independent variables(economic value added, market value added, return on assets, return on equity) and the dependent variable(earning per share), where correlation coefficient is estimated at 0.879. the study concluded also found that 76.7% of change occurred in earning per share explains through previous independent variables, especially economic value added variable and return on equity. [ABSTRACT FROM AUTHOR]