Economic value added as a predictor of stock returns

This research studies the effectiveness EVA as a predictor of superior stock returns and compares it against other indicators like P/E. The sample consists of 50 companies that are the largest in terms of market capitalisation as at June 1991. The period of the study is from 1991 to 1996. The 50...

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Main Authors:	Lak, Yau Huang, Lim, Kok Chuan, Tan, Danny Siang Lim
Other Authors:	Lee, Andrew
Format:	Final Year Project
Published:	2008
Subjects:	DRNTU::Business::Finance::Dividends
Online Access:	http://hdl.handle.net/10356/11477
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Institution:	Nanyang Technological University

id	sg-ntu-dr.10356-11477
record_format	dspace
spelling	sg-ntu-dr.10356-114772023-05-19T06:09:00Z Economic value added as a predictor of stock returns Lak, Yau Huang Lim, Kok Chuan Tan, Danny Siang Lim Lee, Andrew Nanyang Business School DRNTU::Business::Finance::Dividends This research studies the effectiveness EVA as a predictor of superior stock returns and compares it against other indicators like P/E. The sample consists of 50 companies that are the largest in terms of market capitalisation as at June 1991. The period of the study is from 1991 to 1996. The 50 stocks are ranked according to EVA/Market Capitalisation (EVA/MktC). The annual returns of the top ten stocks in each year are then statistically tested against the annual returns of the bottom ten stocks. The overall results suggest that EVA is not an effective predictor of stocks with superior returns. Neither is it superior to P/E or P/B. 2008-09-24T07:55:38Z 2008-09-24T07:55:38Z 1998 1998 Final Year Project (FYP) http://hdl.handle.net/10356/11477 Nanyang Technological University application/pdf
institution	Nanyang Technological University
building	NTU Library
continent	Asia
country	Singapore Singapore
content_provider	NTU Library
collection	DR-NTU
topic	DRNTU::Business::Finance::Dividends
spellingShingle	DRNTU::Business::Finance::Dividends Lak, Yau Huang Lim, Kok Chuan Tan, Danny Siang Lim Economic value added as a predictor of stock returns
description	This research studies the effectiveness EVA as a predictor of superior stock returns and compares it against other indicators like P/E. The sample consists of 50 companies that are the largest in terms of market capitalisation as at June 1991. The period of the study is from 1991 to 1996. The 50 stocks are ranked according to EVA/Market Capitalisation (EVA/MktC). The annual returns of the top ten stocks in each year are then statistically tested against the annual returns of the bottom ten stocks. The overall results suggest that EVA is not an effective predictor of stocks with superior returns. Neither is it superior to P/E or P/B.
author2	Lee, Andrew
author_facet	Lee, Andrew Lak, Yau Huang Lim, Kok Chuan Tan, Danny Siang Lim
format	Final Year Project
author	Lak, Yau Huang Lim, Kok Chuan Tan, Danny Siang Lim
author_sort	Lak, Yau Huang
title	Economic value added as a predictor of stock returns
title_short	Economic value added as a predictor of stock returns
title_full	Economic value added as a predictor of stock returns
title_fullStr	Economic value added as a predictor of stock returns
title_full_unstemmed	Economic value added as a predictor of stock returns
title_sort	economic value added as a predictor of stock returns
publishDate	2008
url	http://hdl.handle.net/10356/11477
_version_	1770566329729810432

Economic value added as a predictor of stock returns

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