Asymmetric impact of economic value-added dynamics on market value of stocks in Pakistan stock exchange, a new evidence from panel co-integration, FMOLS and DOLS

Adil Pasha and Muhammad Ramzan

Shareholders' wealth maximization is the ultimate objective of firms. Economic value added (EVA) is a financial metric linked to shareholders' wealth maximization. Prior studies revealing the efficacy of value-based and accounting-based performance measures are inconclusive. Moreover, all prior research ignored long-run and short-run co-integration of traditional as well as value-based financial performance measures with share prices. This research found EVA has a negative weak but significant relation with stock return in long run by employing panel co-integration, panel FMOLS and panel DOLS for 70 nonfinancial Pakistan Stock Exchange listed firms from 13 industries for a study period of 2006–2015.

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Year of publication:	2019
Authors:	Pasha, Adil ; Ramzan, Muhammad
Published in:	Cogent business & management. - London : Taylor & Francis, ISSN 2331-1975, ZDB-ID 2837523-3. - Vol. 6.2019, p. 1-14
Subject:	EVA \| ROA \| Stock Returns \| FMOLS \| DOLS \| Pakistan \| Kapitaleinkommen \| Capital income \| Börsenkurs \| Share price \| Marktwert \| Market value \| Kointegration \| Cointegration \| Schätzung \| Estimation

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1080/23311975.2019.1653544 [DOI] hdl:10419/206227 [Handle]
Source:	ECONIS - Online Catalogue of the ZBW

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