IDEAS home Printed from
   My bibliography  Save this paper

Creating Wealth for Shareholders: Evaluating the Performance of the Malaysia Property Companies


  • Wan Mahmood, Wan Mansor
  • Norfarah Hani, Yahaya


This paper measures property companies’ performance under new economic performance metric known as Economic Value Added (EVA) and identifies which companies perform better. The EVA of 27 Malaysia property companies are computed and analysed during the periods of 1997 through 2006. The EVA is an economic performance metric proposed by Stern Stewart Management Services. It claims to have successfully eliminated financial and accounting distortions and provides a true measure of a company’s success in driving shareholder value. Overall, the result of the present study shows that most property companies in Malaysia fail to generate enough income to cover their cost of capital, and thus indicating failure in creating corporate wealth. In order to have positive EVA in the future, firms must improved their strategic and scenario planning. In realizing this, management should focus more on investing capital in the high return projects and at the same time improving on optimal capital structure.

Suggested Citation

  • Wan Mahmood, Wan Mansor & Norfarah Hani, Yahaya, 2008. "Creating Wealth for Shareholders: Evaluating the Performance of the Malaysia Property Companies," MPRA Paper 14602, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14602

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. Fatemi, Ali & Desai, Anand S. & Katz, Jeffrey P., 2003. "Wealth creation and managerial pay: MVA and EVA as determinants of executive compensation," Global Finance Journal, Elsevier, vol. 14(2), pages 159-179, July.
    2. Fiordelisi, Franco, 2007. "Shareholder value efficiency in European banking," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 2151-2171, July.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Wealth creation; Economic Value Added; Malaysian property companies; performance; NOPAT;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:14602. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.