Record Details

Economic Value Added or Earnings per Share? An Incremental Content Analysis

Empirical Economic Review

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Field Value
 
ISSN 2522-2465
2415-0304
 
Authentication Code dc
 
Title Statement Economic Value Added or Earnings per Share? An Incremental Content Analysis
 
Added Entry - Uncontrolled Name Ejaz, Maham
Tashfeen, Rubeena
Younas, Kinza
Naeem, Abubaker
Lectuere, Government College University, Faisalabad, Pakistan
Associate Professor, University of Management & Technology, Lahore, Pakistan
Research Associate, Department of Finance, University of Management & Technology, Lahore, Pakistan
PhD Scholar, Massey University, New Zealand
 
Summary, etc. The primary objective of the study is to determine the relative and incremental information content of Economic Value Added (EVA) as compared to the traditional accounting measure of Earnings per Share (EPS). The study employs the methodology derived from Easton and Harris (1991). The study sample comprises 30 largest listed non-financial firms on Pakistan Stock Exchange (PSX) and covers the period from 2005-2014. The findings indicate that EPS outperforms EVA in capturing the market trends of stock return performance. The results of the research negate the common notion of EVA as a superior measure of firm performance. Although, evidence obtained from empirical tests illustrates that EVA provides marginal incremental information combined with EPS, but it is low. The study offers academicians, practitioners and investors a more accurate measure by which to assess performance in the markets. 
 
Publication, Distribution, Etc. Department of Economics - University of Management and Technology
 
Electronic Location and Access application/pdf
https://ojs.umt.edu.pk/index.php/eer/article/view/141
 
Data Source Entry Empirical Economic Review; Vol 1 No 2 (2018): Winter 2018
 
Language Note eng
 
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