Modeling EVA against traditional accounting measures to explain the stock price returns

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dc.contributor.authorMaham Ijaz
dc.date.accessioned2016-04-11T09:59:49Z
dc.date.available2016-04-11T09:59:49Z
dc.date.issued2015
dc.descriptionSupervisor: Malik Umer Ayuben_US
dc.description.abstractThe research study aims to examine the explanatory power of on value based measure of performance; Economic Value Added (EVA) compared with three conventional measures of performance; Earnings on each share (EPS), Investment returns (ROI) and Equity returns (ROE). The comparison is done in order to explain share market returns in Karachi Stock Exchange (KSE), Pakistan. This is one of the prior studies in the boundary of Pakistanregarding value relevance comparison of conventional and value based measures of performance. The methodology follows the valuation model for the respective purpose, proposed by Easton & Harris. Both relative and incremental content approaches have been employed to describe the explanation of share returns by the best measure of performance, either value based or traditional one. The explanatory power of pairwise combinations of value based and conventional measures is also examined to describe returns on stocks. For the respective purpose, the study targeted the sample of 30 companies listed in Karachi Stock Exchange (KSE) and collected pooled cross sectional and panel data over the period 2005-2014. Results of relative content information indicate EPS to be more closely related to stock returns other than EVA and remaining measures of performance, while except EPS, EVA is better measure than remaining two. However, incremental content information suggests EVA and EPS pairwise combination to increase the explanatory power for share market returns explanation. The outcomes of the study recommend that Pakistanstock market participants should pay attention to new value based measures of performance. Also, the participants should develop strategies for investment by examining more determinants. Moreover, the results require the extension of understanding the EVA role in stock market but they may affect the decisions of investor‟s having the market characteristics similar to that of Pakistan.en_US
dc.identifier.urihttps://escholar.umt.edu.pk/handle/123456789/1717
dc.publisherUNIVERSITY OF MANAGEMENT AND TECHNOLOGYen_US
dc.subjectMS Thesisen_US
dc.subjectEconomic Value Added (EVA)en_US
dc.subjectEarnings Per Share (EPS)en_US
dc.subjectValue relevanceen_US
dc.subjectPerformance measuresen_US
dc.subjectPakistanen_US
dc.titleModeling EVA against traditional accounting measures to explain the stock price returnsen_US
dc.titleModeling eva against traditional accounting measures to explain the stock price returnsen_us
dc.typeThesisen_US
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