Performance measures: traditional accounting measures vs. modern value-based measures. The case of earnings and EVA® in the Athens Stock Exchange (ASE)

This study is stimulated by both the EVA ® proponents' assertions and by the mixed empirical results for its value relevance reported until now. Pooled time-series, cross sectional data of listed companies in the Athens Stock Exchange (ASE) over the period 1992-2001 have been employed to examine whether EVA ® or the traditional accounting-based measures are associated more strongly with stock returns. Relative information content tests reveal that stock returns are more closely associated with earnings per share than with EVA ®. However, incremental information content tests suggest that EVA ® adds considerable explanatory power to earnings per share.

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Year of publication:	2009
Authors:	Maditinos, Dimitrios I. ; Sevic, Zeljko ; Theriou, Nikolaos G.
Published in:	International Journal of Economic Policy in Emerging Economies. - Inderscience Enterprises Ltd, ISSN 1752-0452. - Vol. 2.2009, 4, p. 323-334
Publisher:	Inderscience Enterprises Ltd
Subject:	traditional accounting performance measures \| EPS \| ROI \| ROE \| modern value based performance measures \| EVA \| economic value added \| SVA \| shareholder value added \| ASE \| Athens Stock Exchange \| Greece \| stock returns \| earnings per share

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008755563

Performance measures: traditional accounting measures vs. modern value-based measures. The case of earnings and EVA<SUP align=right>®</SUP> in the Athens Stock Exchange (ASE)