Economic Value-Added in the Malaysian Listed Companies: A Preliminary Evidence
DOI:
https://doi.org/10.66674/adcewy85Abstract
‘This study examines the nature and characteristics of Economic Value-Added (EVA) in 100 largest non-financial companies listed on the Malaysian stock exchange, and to assess its impact on stock value. The evidence suggests that, in general, the EVA has a superior influence over firms’ market values compared to the traditional accounting measures such as the earnings per share. Is superiority becomes more apparent when regression tests are conducted separately for companies with positive EVA (value creators) and those with negative EVA (value destroyers). There is a strong positive relationship between EVA and market values for value creators, while the relationship is negative for value destroyers. The negative relationship for value destroyers is inconsistent with expectations and may be sample and period specific.
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Copyright (c) 2001 Mansor Isa, Walter Lo (Author)
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Authors retain copyright and grant Capital Markets Review the right of first publication. Articles are published under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence: https://creativecommons.org/licenses/by/4.0/. This licence permits sharing and adaptation for any purpose, including commercial use, provided appropriate credit is given, a link to the licence is supplied and any changes are indicated. Third-party material excluded from the article's licence must be clearly identified, and authors are responsible for obtaining any required permission.
