A Study of Refined Economic Value Added Explanatory Power Associated with MVA & EPS in Tehran Stock Exchange

The current study aims to examine the relationship between Refined Economic Value Added and market Value Added as the independent variable and earnings of per share as the dependent variable in companies listed in Tehran Stock Exchange during five years 2004-2008. In order to measuring the correlation of the criterion toward market Value Added in relation to earnings per share. Hence, the main question of the study is that if Refined Economic Value Added has more explainability than market Value Added in explaining the earnings per share. According to the research objective, 97 companies were selected as the sample through systematic omittance method. Then, hypotheses were stated and two estimating regression models were used to test the hypothesis; and in order to select the superior model among the other models, Voung statistics was used. The results, according to the Voung statistics and R 2 , indicate that in studied sample, market Value Added estimated in model has more correlation with earnings per share than Refined Economic Value Added.