The Examination of Economic Value Added Profitability on Evalution of Firms Market Risk in Iran

Subject Areas : Management Accounting

Farzaneh Heidarpoor ¹ , Mehdi Nayeb ²

1 - نویسنده مسئول و طرف مکاتبه
2 - ندارد

Received: 2009-11-06 Accepted : 2010-02-09 Published : 2009-12-22

Keywords: Weighted Average Cost Of Capit, Economic Value Added (EVA), Net Operating Profit After Tax, systematic risk, Beta Coefficient,

Abstract :

In this article, has been tried to study the relation between two important objects in accounting and economic, “Economic Value Added and Market Risk”. Present paper is provided to confirm or declaring this theory that whether there is any relation between EVA and β among firms in Tehran Stock Exchange or not. To examine this hypothesis, 65 firms have been selected from the companies in Tehran Stock Exchange during 1380-1384 by using a statistic method, named Cochran. After calculating research's variables (by using financial statements information and investing management software) and by using Pierson correlation analysis method it became clear that there is moderate reverse relation between EVA & β in 1380 and 1382, very weak and reverse in 1381 and very weak and direct in 1383-1384. In other words this research shows that there’s no strong relation between EVA & β in the examined period