Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation
Profit maximization and increasing shareholder’s wealth have been one of the most crucial concepts for the organization. The corporate manager and shareholders rely upon the traditional accounting measures like net income, Earnings per share (EPS), Return on Equity (ROE), Return on Net worth (RONW),...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/11178/ http://umpir.ump.edu.my/id/eprint/11178/1/ICEBM2014-conference.pdf |
| _version_ | 1848818942465802240 |
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| author | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_facet | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_sort | Panigrahi, Shrikant |
| building | UMP Institutional Repository |
| collection | Online Access |
| description | Profit maximization and increasing shareholder’s wealth have been one of the most crucial concepts for the organization. The corporate manager and shareholders rely upon the traditional accounting measures like net income, Earnings per share (EPS), Return on Equity (ROE), Return on Net worth (RONW), Return on Capital Employed (ROCE) to measure the value created by the firm. But this study utilizes economic measures like Economic Value Added (EVA) and Market Value Added (MVA) combined with the accounting measures to perform a comparative study in order to conclude the most appropriate measures for the creation of shareholder’s wealth. The EVA of 28 construction companies from the total 43 construction companies listed in Bursa Malaysia were selected for the study and analyzed during the period of 2003 to 2012. Overall the result for the study found that very few of the construction companies were having positive EVA for the creation of Shareholder’s wealth. It was also found that there is a strong relationship between created shareholder’s value and economic value added. Thus it is very important to know that whether in the long run the shareholders wealth would be maximized through the usage of EVA as a performance measurement tool. Furthermore, depending on the statement of EVA concept rather than accounting measures would help the shareholder’s for future investment decisions and managing their investment portfolios. |
| first_indexed | 2025-11-15T01:45:41Z |
| format | Conference or Workshop Item |
| id | ump-11178 |
| institution | Universiti Malaysia Pahang |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T01:45:41Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ump-111782018-08-29T04:33:19Z http://umpir.ump.edu.my/id/eprint/11178/ Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan HD Industries. Land use. Labor HD28 Management. Industrial Management Profit maximization and increasing shareholder’s wealth have been one of the most crucial concepts for the organization. The corporate manager and shareholders rely upon the traditional accounting measures like net income, Earnings per share (EPS), Return on Equity (ROE), Return on Net worth (RONW), Return on Capital Employed (ROCE) to measure the value created by the firm. But this study utilizes economic measures like Economic Value Added (EVA) and Market Value Added (MVA) combined with the accounting measures to perform a comparative study in order to conclude the most appropriate measures for the creation of shareholder’s wealth. The EVA of 28 construction companies from the total 43 construction companies listed in Bursa Malaysia were selected for the study and analyzed during the period of 2003 to 2012. Overall the result for the study found that very few of the construction companies were having positive EVA for the creation of Shareholder’s wealth. It was also found that there is a strong relationship between created shareholder’s value and economic value added. Thus it is very important to know that whether in the long run the shareholders wealth would be maximized through the usage of EVA as a performance measurement tool. Furthermore, depending on the statement of EVA concept rather than accounting measures would help the shareholder’s for future investment decisions and managing their investment portfolios. 2014 Conference or Workshop Item PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/11178/1/ICEBM2014-conference.pdf Panigrahi, Shrikant and Yuserrie, Zainuddin and Noor Azlinna, Azizan (2014) Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation. In: The third International Conference on Entrepreneurship and Business Management , 5-6 September 2014 , Penang, Malaysia. . (Unpublished) (Unpublished) |
| spellingShingle | HD Industries. Land use. Labor HD28 Management. Industrial Management Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title | Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title_full | Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title_fullStr | Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title_full_unstemmed | Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title_short | Investigating Relationship Between Economic Value Added, Market Value Added And Shareholder's Wealth Creation |
| title_sort | investigating relationship between economic value added, market value added and shareholder's wealth creation |
| topic | HD Industries. Land use. Labor HD28 Management. Industrial Management |
| url | http://umpir.ump.edu.my/id/eprint/11178/ http://umpir.ump.edu.my/id/eprint/11178/1/ICEBM2014-conference.pdf |