Effectiveness of EVA : a comparative study on industrial product companies in Malaysia / Ahmad Zoolhelmi Alias
Economic Value Added (EVA) was advocated by Stern Stewart and Co. in 1982. This study intended to identify any added value or added advantage in EVA compare to conventional methods such as percentage increase in net tangible assets, profit margin, return on assets (ROA) and return on equity (ROE)...
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| Format: | Thesis |
| Language: | English |
| Published: |
2001
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| Online Access: | http://ir.uitm.edu.my/id/eprint/2172/ http://ir.uitm.edu.my/id/eprint/2172/1/TM_AHMAD%20ZOOLHELMI%20ALIAS%20AC%2001_5%201.pdf |
| Summary: | Economic Value Added (EVA) was advocated by Stern Stewart and Co. in 1982.
This study intended to identify any added value or added advantage in EVA compare
to conventional methods such as percentage increase in net tangible assets, profit
margin, return on assets (ROA) and return on equity (ROE) as a performance
measurement.
This study is conducted in Malaysian business environment, as results of the
previous researches are mixed regarding the efficacy of EVA. A sample size of 78
companies from Industrial Product sector of KLSE main board had been selected.
In analysis of performance ranking and correlation between stock return and
financial parameters, the outcomes have proved that there is no added value or added
advantage in EVA compared to conventional methods as a performance
measurement.
It is hoped that this study will give at least a basic idea of Economic Value Added
and also explain correlation between financial parameters and stock return under
Malaysian business environment. |
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