Economic value added (eva) as a performance measurement for glcs vs non-glcs: evidence from bursa malaysia

Ismail, Issham; Fazilah, Abdul Samad M; Hwa, Yen Siew; Kamil, Anton Abdulbasah; Ayub, Azli Azli; Ayub, Meor Azli

doi:10.18267/j.pep.328

Cited by 18 publications

(9 citation statements)

References 28 publications

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“…The reason behind is firm's expansion in the size could incur a greater increment in capital cost proportion as compared to the earnings generated. This outcome is consistent Issham et al (2008) as they also concluded that large size and government linked firms are more likely to have lower EVAs. Same result also has been found by Hudaib and Haniffa (2006).…”

Section: Multiple Regression Analysissupporting

confidence: 81%

Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry

Razali¹,

Yee²,

Hwang³

et al. 2018

IBR

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Remuneration is broadly used as an incentive that affects decisions made and strategies planned by directors which cause great impact on firm performance and profitability. This study aims to investigate the directors' remuneration of the consumer products sector focusing particularly on Malaysian listed companies under Consumer Product Industry. These firm's performances are measured by return on assets (ROA) and return on equities (ROE). This study consists a sample of 40 Malaysian listed companies for the period of 2012 to 2014. After controlling for board size, CEO duality, firm size, firm age, and leverage; the regression results show director remuneration has positive relationship with firm performance (measured by ROA and ROE). This suggests that high remuneration is able to motivate and retain directors in order to perform their duty and work harder for the best interest of shareholders. The result also shows all variables affect firm performance differently. For future research, we recommend that this study be expanded using more samples from other industries and other measurement of firm performances such as growth and ratings.

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Section: Multiple Regression Analysissupporting

confidence: 81%

Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry

Razali¹,

Yee²,

Hwang³

et al. 2018

IBR

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“…In this context, Machuga et al (2002) experienced mixed results concentrating on the relationship that exists between EVA and stock returns. Such type of findings was supported by Chattopadhyay and Das (2006), Issham et al (2007); and Nappi-Choulet and Missonier-Piera (2007). Banerjee and Jain (1999) conducted an empirical research in this field.…”

Section: Introductionmentioning

confidence: 61%

Shareholders’ Value Creation and Market Price of Share: A Study in Indian Context

Basak¹

2017

MUDRA

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Shareholders' value creation has become a matter of concern in the world of financial management in recent times. Shareholders' value creation refers to the net value addition for the shareholders. In the present corporate scenario, financial managers do not concentrate only on profit generation but also on value creation for their shareholders, to ensure the survival of the business in the long run. It has been observed that shareholders' value creation is related to market price of share. In this paper, an attempt has been taken to measure shareholders' value creation by five different approaches selecting few sample companies. The approaches are-Market Value to Book Value Ratio approach, Economic Value Added (EVA) approach, Market Value Added (MVA) approach, Shareholders' Value Added (SVA) approach and Shareholders' View Point approach. Further, we quantify the degree of association that exists between shareholders' value creation and market price of share. The data analysis reveals that shareholders' value per share and market value per share are positively correlated to a considerable extent.

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“…Several authors like Young (1997); Issham et al (2008) [36], and Silverman (2010) [37] used the model of EVA developed by Stern and Stewart to inspect the creation of value to shareholders. However, there were some variation in the explanation and calculations by different au-thors from which four of them are mentioned in this paper.…”

Section: Empirical Evidencementioning

confidence: 99%

“…Value is created only if the return generated by using the net assets surpasses the cost of capital. Issham et al (2008), defined EVA as the dollar amount of charges for capital (both debt and equity) are subtracted from the dollar amount of net operating after tax (NOPAT) net operating after tax, calculated figure is multiplied with the percentage of weighted average coat capital. Issham et al further state that EVA is an estimate of the amount by which earning exceeds or fall short of the rate of return shareholders could get by investing in other securities of comparable risk and includes a charge against profit for the cost of all capital a firm employs.…”

Section: Empirical Evidencementioning

confidence: 99%

EVA as Superior Performance Measurement Tool

Mamun¹,

Entebang²,

Mansor³

2012

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Prior to the East Asian financial crisis scholars found the necessity of a true financial performance measure in Malaysia. After more than one decade of the crisis Malaysian firms still stick with the conventional performance measures, which are criticised due to general accepted accounting principles. In this vein, this study aims to study a value based financial performance measure which can be adopted by the Malaysian firms over the conventional measures currently used. Economic Value Added (EVA) was introduced and advocated by Stern Stewart and Co. in 1982. This study intended to identify why EVA should be used as financial performance measure over the conventional measures and any added value or added advantage in EVA compare to conventional methods. EVA has been able to gain attention of the corporate giants like Coca-Cola, Sprint Corporation and Quaker Oats, as it is able to depict the true profitability of the company, however, there have been very little research conducted on EVA in Asian countries including Malaysia.

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Economic value added (eva) as a performance measurement for glcs vs non-glcs: evidence from bursa malaysia

Cited by 18 publications

References 28 publications

Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry

Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry

Shareholders’ Value Creation and Market Price of Share: A Study in Indian Context

EVA as Superior Performance Measurement Tool

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