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An Empirical Study of Impact of EVA Momentum on the Shareholders Value Creation as Compared to Traditional Financial Performance Measures ¨C With Special Reference to the UAE

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  • Ahmed Magdy Fayed
  • Suchi Dubey

Abstract

The unawareness of value-based performance measures when allocating investments could lead to destroying value. This paper presents comparison of three groups of performance measures being accounting-traditional measures, market-based measures and value-based measures with special focus on EVA Momentum calculated as (¦¤EVA / Trailing Sales). The study covers UAE stock exchanges from 2008 to 2013. A methodology is designed to determine the right transformation of panel data then deciding on the appropriate regression technique among Fixed Effects, Random Effects or Pooled OLS model. Advanced modeling techniques as Driscoll-Kraay and Prais-Winsten models are used to examine serial correlation and heteroskedasticity.

Suggested Citation

  • Ahmed Magdy Fayed & Suchi Dubey, 2016. "An Empirical Study of Impact of EVA Momentum on the Shareholders Value Creation as Compared to Traditional Financial Performance Measures ¨C With Special Reference to the UAE," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 23-38, May.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:5:p:23-38
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    References listed on IDEAS

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    Cited by:

    1. Hanan Ali Al-Awawdeh & Sa¡¯ad Abdul Kareem Al-Sakini, 2018. "The Impact of Economic Value Added, Market Value Added and Traditional Accounting Measures on Shareholders¡¯ Value: Evidence from Jordanian Commercial Banks," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(10), pages 1-40, October.
    2. Miguel Angel Latorre Guillem, 2020. "The Customer Orientation Service of Spanish Brokers in the Insurance Industry: The Advisory Service of the Insurance Distribution Channel Bancassurance," Sustainability, MDPI, vol. 12(7), pages 1-22, April.
    3. Kamandulienė Asta & Kulbokas Žilvinas, 2020. "The Assessment of Financial Performance of the Lithuanian Dairy Sector’s Listed Companies," Management of Organizations: Systematic Research, Sciendo, vol. 83(1), pages 73-92, June.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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