Considering of the Relationship between Economic Value Added, Stock Yield and Accounting Net Income Case Study: Iran

Economic value added is one of the accounting functional criteria. Herein this research, we are studying the relationship between the economic value added and stock yield and accounting profit. The variables that are studied herein this research, are namely Economic Value Added (EVA), Accessible Net Income for stockholders (NI), Net Operational Profit after Tax Deduction (NOPAT), Operational Cash Flow (OCF), and Remaining Interest (RI). Statistical population of this research is Tehran stock exchange companies. Since the statistical population of this research is large and number of existing companies at Stock Exchange, a few companies from among the said companies have been chosen. These companies consist of thirty foodstuff, beverage, rubber and plastic companies from 2004-05 to m2006-07. The results have revealed that variables of net income (NI), Economic Value Added (EVA) and Remaining Interest (RI) and Operational Cash Flow have meaningful effects at the level of 0.05% and Net Operational Profit After Tax Deduction at level of 10% have meaningful effects on stock yield rate. Moreover, considering the results obtained from Net Income (NI) have negative meaningful effects on stock yield and there is no positive relationship between Net Income (NI) and stock yield. Furthermore, according to results obtained, it has been found that Net Income (NI) variables have more effects (with a coefficient of 4.54E-12) compared to Economic Value Added (EVA) (with a coefficient of -3.67-E16).