Abstract

http://ssrn.com/abstract=1656338
 
 

References (22)



 
 

Citations (1)



 


 



Eva Versus Traditional Accounting Measures of Performance as Drivers of Shareholder Value - A Comparative Analysis


Johannes De Wet


University of Pretoria - Department of Financial Management

November 30, 2005

Meditari, Vol. 13, No. 2, pp. 1-16, 2005

Abstract:     
Various researchers and practitioners, notably Stern Stewart Consulting Company andAssociates, have claimed economic value added (EVA) to be superior to traditional accounting measures in driving shareholder value. Other researchers have refuted these claims by supplying data in support of the traditional accounting indicators like earnings per share EPS), dividends per share (DPS), return on assets (ROA) and return on equity (ROE). This study endeavored to analyse the results of companies listed on the JSE Securities Exchange South Africa. Market value added (MVA) was used as a proxy for shareholder value. The findings do not support the purported superiority of EVA and in fact found stronger relationships between MVA and cash flow from operations. The study also found very little correlation between MVA and EPS and MVA and DPS, concluding that the credibility of share valuations based on earnings or dividends should be questioned seriously.

Number of Pages in PDF File: 30

Keywords: Economic Value Added (EVA) Market value added (MVA)

Accepted Paper Series


Download This Paper

Date posted: August 12, 2010  

Suggested Citation

de Wet, Johannes, Eva Versus Traditional Accounting Measures of Performance as Drivers of Shareholder Value - A Comparative Analysis (November 30, 2005). Meditari, Vol. 13, No. 2, pp. 1-16, 2005. Available at SSRN: http://ssrn.com/abstract=1656338

Contact Information

Johannes De Wet (Contact Author)
University of Pretoria - Department of Financial Management ( email )
South Africa
Feedback to SSRN


Paper statistics
Abstract Views: 2,443
Downloads: 700
Download Rank: 18,879
References:  22
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.438 seconds