Relationship of Economic Value Added, Market Value Added and Stock Returns in Iron and Steel Industry

• Main Authors: Wan Ju Lu, 呂婉如
• Other Authors: Chao Yang Hung
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/04209521076148007990

碩士 === 大葉大學 === 事業經營研究所碩士在職專班 === 95 === In this study, Economic Value Added (EVA) and the traditional performance indexes (ROA, ROE and EPS) were applied to evaluate Market Value Added (MVA) and Stock Returns of the iron and steel industry stocks listed on the Taiwan Stock Exchange. The target research period is from 1997 to 2006. The EVA were used to identify whether it is appropriate for the iron and steel industry and to identify whether it is a better measurement than the traditional performance indexes in explaining Market Valued Added and Stock Returns. The results of these empirical analyses are summarized as follows: 1. Economic Value Added is proved to be highly related and explainable with Market Value Added for the traditional iron and steel industry in Taiwan. 2. The results also show that Economic Value Added explains Market Value Added better than the traditional performance indexes. 3. Economic Value Added is not related and can not explain the Stock Returns. 4. Economic Value Added can not explain Stock Returns as powerful as the traditional performance indexes.