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Exploring the correlation between selected performance measurement tools for individual investors in South AfricaTotowa, Jacques 02 1900 (has links)
It is generally acknowledged that the share price of listed companies is not usually a true reflection of the value imbedded in the said companies. The main purpose of this study is to explore the correlation between selected performance measurement tools, namely Return on Equity (ROE) and Economic Value Added (EVA®), and the share price of companies listed on the Johannesburg Stock Exchange.
The study is a quantitative one as it uses data extracted from McGregor BFA database to investigate the relationship between the variables studied. Correlation and linear regression analyses were used in determining such relationships.
This study found that there is a synergy in using ROE and EVA® as performance measurement tools and that their interaction explains 8.06% of the movement in the share price of listed companies, all things being equal. Hence it is recommended to identify and study possible synergies between other performance measurement tools. / Management Accounting / M. Phil. (Accounting Sciences)
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Exploring the correlation between selected performance measurement tools for individual investors in South AfricaTotowa, Jacques 02 1900 (has links)
It is generally acknowledged that the share price of listed companies is not usually a true reflection of the value imbedded in the said companies. The main purpose of this study is to explore the correlation between selected performance measurement tools, namely Return on Equity (ROE) and Economic Value Added (EVA®), and the share price of companies listed on the Johannesburg Stock Exchange.
The study is a quantitative one as it uses data extracted from McGregor BFA database to investigate the relationship between the variables studied. Correlation and linear regression analyses were used in determining such relationships.
This study found that there is a synergy in using ROE and EVA® as performance measurement tools and that their interaction explains 8.06% of the movement in the share price of listed companies, all things being equal. Hence it is recommended to identify and study possible synergies between other performance measurement tools. / Management Accounting / M. Phil. (Accounting Sciences)
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