Empirical investigation on EVA and accounting performance measures: Evidence from China stock market

摘要

Using the data of Chinese listed firms on main board in the year of 2008, this paper investigates the explanatory power to market value added (MVA) of economic value added (EVA) and traditional accounting measures, respectively. The empirical results show that there are significant correlations between EVA and most of the accounting performance measures, such as earnings per share, net profit and return on equity, etc. EVA is superior to traditional accounting measures in its association with market value added, which implies that EVA can reflect the change of firm value more efficiently.