Investigating the Relation between Market Value Added (MVA) To Earning Ratio with Economic Value Added (EVA) To Earning Ratio (Tehran Stock Exchange)

Subject Areas : Management Accounting

قدرت اله طالب نیا ¹ , اسماعیل شجاع ²

1 - مسئول مکاتبات
2 - ندارد

Received: 2010-11-06 Accepted : 2011-03-15 Published : 2011-03-21

Keywords: Market Value Added, economic value added, Earning, WACC, Tehran&#x0D, &#x0D, Stock Exchange,

Abstract :

Optimal Performance resulted in increase of company value and ultimatelyincrease wealth Of shareholders .The main challenge of managing trade institutions iscreating Value for institutions in particular and wealth crating for shareholders inparticular. Today economic value added is considered as the highest index fromwealth for shareholders. This index has a close relation ship with market value addedas external index of wealth creation. This research is a comparative reviewbetween relative market value added (MVA) favor accounting profit and economicvalue added in favor of accounting in companies accepted at Tehran stock BondBourse from the year 1382 until 1386 . So that on this basis one can haveaccess to internal performance assessment criteria ,a representative market value thatis considered achieved. Statistical methods This study , along with linear regressiontogether with determination ratio and E views software is used to test hypotheses.The results show a positive relationship-though a weak one- as variable Dependent to(EVA/Earning) as independent variable in all companies under study regardless totheir industry . There for in accepted companies in Tehran Stock Bond Bourse(EVA/Earning) as an internal performance alone can not measure criteria , predictvalues market . In the Group companies and industries being reviewed exceptpharmaceutical and automobile manuactur- ing industries which showed ameaningful relationship between variables, in other remaining industries there wasno significant relationship between variables .