The Effect of Information Content of Economic Value-Added and Traditional Criteria on Firms’ Markets Value Added

• Main Authors: Asadi Asadi, Ahmad Zendedel, Kieanynejad Kieanynejad
• Format: Article
• Language: fas
• Published: University of Tehran 2013-07-01
• Series: بررسی‌های حسابداری و حسابرسی
• Subjects: Economic Value Added; Market value added; Relative Information Content; Incremental Information Content
• Online Access: https://acctgrev.ut.ac.ir/article_35522_27f0e4b1a985c1a1dc84cbd35609f913.pdf

Performance evaluation is a process which helps shareholders to make decisions of optimal investment. So the present study investigates the economic value added of relative and additive information content toward traditional criteria, shareholder salary efficiency- net profit after subtracting tax and the interest of each share on value added of market. Analyzing the findings of the study is based on panel data methodology for 140 listed firms in Tehran Stock Exchange (TSE) over 2006-2010 employing Eviews6 econometric software. Results show that economic value added information content is not greater than information content of Return on Equity, Net Operating Profit after Tax and Earning Per Share - in stating value added of market, but concurrent entrance of economic value added along with traditional criteria increase the explanatory power of added value of the market. In the other word, economic value added has incremental information content.