Surveying the relationship between economic value added and financial leverage with risk- adjusted stock returns

Subject Areas : Management Accounting

Ghodratollah Talebniya ¹ , Mohammad Imani Barandagh ² , Askar Pourreza ³

1 - نویسنده اول و مسئول مکاتبات.
2 - ندارد
3 - ندارد

Received: 2014-11-16 Accepted : 2014-11-16 Published : 2008-12-21

Keywords: economic value added, financial leverage, risk- adjusted stock returns,

Abstract :

Investment in firms is an process two subsequent (Risk and return). In theinvestment project cannot select only on base of return overhead ,too, we mustattend risk in our decision. Other hand ,now day for shareholder ,wealthearning is a topic purpose in the economic unit's management .Economic valueadded(EVA) is a wealth earning measurement that in comparison of othermeasurements has more utility. There are various risk for the firm's stocks .so ,we can adjusted the return of firm's stocks on the base of stocks risk, thatsufficiency compression between various return stocks of market is possible .Inthis, main purpose of research, study mater correlation and sufficiencyexpression between EVA and financial leverage for various measurements riskadjustedstock returns (RVAR , RVOL ,α).Statistical society of this research iscompanies accepted in stock exchange of Tehran ,which ,forty five of them hasbeen selected as statistical sample. Research period is since 1382 to 1386.hypothesis testing research done in confidence level 95 percent .Researchresults show that ,there is no significant correlation between EVA andfinancial leverage with risk- adjusted stock returns for each of years separatelyand accumulated years and only there is a significant correlation between EVAand RVOL in 1382