Mohamad Kashanipoor; Amir Rasaiian
Volume 5, Issue 20 , January 2008, , Pages 129-157
Abstract
Market Value Added is important measure in firms' performance measurement. The main goal of this paper is to review the relationship between MVA and some measures of performance measurement such as EVA~ROA, SRE, PBT/S ...
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Market Value Added is important measure in firms' performance measurement. The main goal of this paper is to review the relationship between MVA and some measures of performance measurement such as EVA~ROA, SRE, PBT/S and OCF. Therefore 189 sample firms that their required data for a 10 years period (1376-1385) was available are selected. Then the related data to 5 independent variables are reviewed. MVA is calculated as dependent variable too. The simple regression model is used to examine the hypothesis. The method of the regression model is panel data regression. Signification of models is examined by T and F statistics. The conclusions indicate that there are significant relationships between MVA and EVA, ROA, SRE and OCF. The conclusions account for that EVA is the best measure to explain the changes in MVA.
Iraj Noravesh; Mehdi Heidari
Volume 2, Issue 8 , January 2005, , Pages 121-151
Abstract
In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information ...
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In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information content more incrementally than Operating Profit (OP) and Operating Cash Flow (OCF)?
The time period and number of samples respectively is 1378-1382, 110 company in four industry: Nutrition, Chemical, Automobile and nonmetal minerals. Current research hypothesis tested as follows: the hypothesis tested through regressed pooled time series, cross-sectionally for each industry and the selected firms’ totals, that is, computing correlation coefficient and determinant coefficient.
Current research results show:
By the except ion of Chemical and Automobile industries, the existence of significant relation between cash value added and annual stock return in other industries and in level of the selected firms totals verified.
By the exception of Chemical industry, the relative information content
of cash value added (CVA) in other industries, and in level of the selected firms totals much than operating profit(OP) and operating cash flow(OCF) i.
By the exception of Chemical industry, the information content of cash value added (CVA) in other industries, and in level of the selected firms totals relative to operating profit (OP) and operating cash flow(OCF) was incremental.
