Economic value added (EVA tm) : an emprical examination of its application to publicly listed companies in Singapore during a period of economic crisis

This study attempts to test the assertion that Economic Value Added (EVA) is more highly associated with the stock returns than other financial variables, and to evaluate EVA as a tool for investors and managers in making financial decisions. A sample of 80 companies listed on the main board of th...

Full description

Saved in:
Bibliographic Details
Main Authors: Lim, Chi Chi, Neo, Han Seng, Lim, Jeffery Chuan
Other Authors: Nanyang Business School
Format: Theses and Dissertations
Language:English
Published: 2010
Subjects:
Online Access:http://hdl.handle.net/10356/42463
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
Description
Summary:This study attempts to test the assertion that Economic Value Added (EVA) is more highly associated with the stock returns than other financial variables, and to evaluate EVA as a tool for investors and managers in making financial decisions. A sample of 80 companies listed on the main board of the Stock Exchange of Singapore is selected for this study. Data is obtained from Company Analysis of Primark. Using the data, EVA variables, accounting variables and residual income variables are calculated. These are then used to test for any correlation with company stock returns. It is also the aim of this study to evaluate the performance of EVA, in light of the recent Asian financial crisis (1995-1997), which has not been attempted in the past in Singapore.