The Relationship between External and Internal Performance Measures of the Firm: A Reassessment by the Econometrics of Dynamic Non-Stationary Panels (La Relation Entre Les Mesures De Performance Externes Et Internes De La Firme: Un Réexamen Par L’Économétrie Des Panels Dynamiques Non Stationnaires)
27 Pages Posted: 18 Jun 2009 Last revised: 22 Jun 2009
Date Written: April 21, 2009
Abstract
This article uses the recent developments in the econometrics of non-stationary dynamic panels to reassess the relationship between external and internal performance measures of the firm. The test of Im, Pesaran and Shin (2003) and the test of Pedroni (2004) were applied on a sample of 420 U.S. firms over the period (1990-2004) to verify the existence of a long term equilibrium between the market value added (MVA) of the firm and four measures of internal performance.
Note: Downloadable document is in French.
Keywords: EVA, EPS, Residual income, ROE, MVA, Non-stationary dynamic panels
JEL Classification: C5, M41, G32
Suggested Citation: Suggested Citation
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