Empirical Evidence on the Relationship between Eva and Stock Returns in Brazilian Firms

9 Pages Posted: 20 Apr 2005

Abstract

The paper reports empirical evidence on the relationship between Economic Value Added (EVA) and stock returns in Brazilian firms. This relationship has been subject to controversy in recent years, with some authors finding significant ties between those variables while others finding none. The hypothesis that EVA affects stock returns is tested through regression analysis using alternative models. The sample comprises companies traded in the main Brazilian stock exchange. A comparison of outcomes of previous studies with ours shows that significant results depend on finding the appropriate variables (stock prices versus stock returns) and the correct dynamics linking the dependent and the explanatory variable.

Keywords: EVA, Economic Value Added, stock returns, Brazilian firms, empirical evidence

JEL Classification: C12, C22, M41

Suggested Citation

de Medeiros, Otavio Ribeiro, Empirical Evidence on the Relationship between Eva and Stock Returns in Brazilian Firms. Available at SSRN: https://ssrn.com/abstract=701421 or http://dx.doi.org/10.2139/ssrn.701421

Otavio Ribeiro De Medeiros (Contact Author)

University of Brasilia ( email )

Campus Universitario Darcy Ribeiro
Gleba A - Reitoria
Brasilia, DF 70910-900
Brazil

HOME PAGE: http://geocities.yahoo.com.br/otaviomedeiros/index.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,765
Abstract Views
6,527
rank
11,493
PlumX Metrics