M. M. Naderi Nooreyni; F. Hashemnia
Abstract
AbstractThe purpose of this paper is to investigate the explanatory power of value-based performance measurement models, compared with traditional accounting performance measures, in explaining stock market return in Tehran Stock Exchange. The paper employs incremental information content approach to ...
Read More
AbstractThe purpose of this paper is to investigate the explanatory power of value-based performance measurement models, compared with traditional accounting performance measures, in explaining stock market return in Tehran Stock Exchange. The paper employs incremental information content approach to examine which performance measure best explains stock market return. Traditional accounting variables used in this research are: Earning before tax, Return on assets, Return on equity, Earning per Share and Operating cash flow and value based variables are economic value added, Refined economic value added and Shareholder value added. The population of this research is all listed companies firms in Tehran Stock Exchange and 128 firms are selected as the sample which is examined over the years 1384 to 1393. We used panel data for testing hypothesis and also Views software. The results indicate EVA & REVA have incremental information content in comparison with traditional accounting variables
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 ...
Read More
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.
