ScholarLens Back to search
2011•Unpublished venueRequires access

Empirical investigation on EVA and accounting performance measures: Evidence from China stock market

Qingmei Tan, Na Zhang, Ming-ze Ma

Open publisher page 10 citations

Abstract

Using the data of Chinese listed firms on main board in the year of 2008, this paper investigates the explanatory power to market value added (MVA) of economic value added (EVA) and traditional accounting measures, respectively. The empirical results show that there are significant correlations between EVA and most of the accounting performance measures, such as earnings per share, net profit and return on equity, etc. EVA is superior to traditional accounting measures in its association with market value added, which implies that EVA can reflect the change of firm value more efficiently.

About this research paper

What this paper is about

Using the data of Chinese listed firms on main board in the year of 2008, this paper investigates the explanatory power to market value added (MVA) of economic value added (EVA) and traditional accounting measures, respectively. The empirical results show that there are significant correlations between EVA and most of the accounting performance measures, such as earnings per share, net profit and return on equity, etc. EVA is superior to traditional accounting measures in its association with market value added, which implies that EVA can reflect the change of firm value more efficiently.

Why it matters

OpenAlex reports 10 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Using the data of Chinese listed firms on main board in the year of 2008, this paper investigates the explanatory power to market value added (MVA) of economic value added (EVA) and traditional accounting measures, respectively. The empirical results show that there are significant correlations between EVA and most of the accounting performance measures, such as earnings per share, net profit and return on equity, etc. EVA is superior to traditional accounting measures in its association with market value added, which implies that EVA can reflect the change of firm value more efficiently.

Key concepts: Economic Value Added, Market value added, Earnings per share, Accounting, Explanatory power, Return on equity, Book value, Equity (law)

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Empirical investigation on EVA and accounting performance measures: Evidence from China stock market — Research Paper | ScholarLens