IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2015i1p66-70.html
   My bibliography  Save this article

EVA as an Indicator of Shareholders' Value Creation

Author

Listed:
  • Sandeep Goel

    (Management Development Institute)

Abstract

The present paper investigates the EVA trend and its relationship with shareholders' value creation in corporate enterprises in India. Shareholders' value maximization is reflected in the market performance. The impact analysis of EVA on market price has been tested for nine years (2004-05 to 2012-13) with the help of linear regression, correlation coefficient and adjusted R-square. Results show that EVA has a positive impact on shareholders' value creation. It is hoped that it will be useful to the investors for decision-making and contribute to the value investing.

Suggested Citation

  • Sandeep Goel, 2015. "EVA as an Indicator of Shareholders' Value Creation," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 66-70, March.
    • Handle: RePEc:iaf:journl:y:2015:i:1:p:66-70
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/248-dodana-ekonomichna-vartist-yak-pokaznik-stvorennya-akcionernoi-vartosti.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/248/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fernández, Pablo, 2002. "A definition of shareholder value creation," IESE Research Papers D/448, IESE Business School.
    2. Calum G. Turvey & Linda Lake & Erna van Duren & David Sparling, 2000. "The relationship between economic value added and the stock market performance of agribusiness firms," Agribusiness, John Wiley & Sons, Ltd., vol. 16(4), pages 399-416.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaros³aw Kaczmarek, 2014. "Measurement Of Creating Corporate Value For Shareholders – Development Of Measurements And Improvement Of Management Competence And Skills," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 9(1), pages 72-83, June.
    2. Gabriela Chmelíková, 2011. "Framework of performance measurement system for Czech small breweries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 167-176.
    3. Sliman S. Alsoboa, 2017. "The Influence of Economic Value Added and Return on Assets on Created Shareholders Value: A Comparative Study in Jordanian Public Industrial Firms," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 63-78, April.
    4. Michel Sayumwe, 2019. "Corporate Governance: An Overview. From Creation of Value for Shareholders by the Board to the Duality Role of Its Chairperson," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 8(1), pages 40-51, April.
    5. Gabriela Chmelíková, 2013. "Performance factors of Czech brewing industry companies," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 353-365.
    6. Cucagna, Maria Emilia & Goldsmith, Peter D., 2018. "Value Adding in the Agri-Food Value Chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), February.
    7. David Sparling & Calum G. Turvey, 2003. "Further thoughts on the relationship between economic value added and stock market performance," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 255-267.
    8. Ibendahl, Gregory A. & Fleming, Ronald A., 2003. "Using Economic Value Added (Eva) To Examine Farm Businesses," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35145, Southern Agricultural Economics Association.
    9. Erna van Duren & David Sparling & Calum Turvey & Linda Lake, 2003. "An assessment of the strategies and strengths of medium-sized food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 115-132.
    10. Oksana Melnyk, 2019. "Financial Innovation for Assessing the Enterprise Capitalization," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 95-99, September.
    11. Sujata Behera, 2021. "Does EVA valuation model outperform earnings valuation model in explaining market value of equity?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6312-6337, October.
    12. Brandon Schaufele & David Sparling, 2011. "Regulation and the financial performance of Canadian agribusinesses," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(2), pages 201-217, August.
    13. Stephen P. Keef & Melvin L. Roush, 2003. "The relationship between economic value added and stock market performance: A theoretical analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 245-253.

    More about this item

    Keywords

    EVA; shareholders; weighted average cost of capital; market performance; value creation;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2015:i:1:p:66-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.