The main purpose of this thesis is to provide statistical evidence on the value relevance of a set of selected performance measures, to measure the performance of companies according to the traditional accrual measures and value added measures, and finally, to assess their information content and incremental information content. The study covers a sample of 986 UK companies listed in the London Stock Exchange (LSE) with an active share during the period 1990 to 2012. J This thesis also provides evidence on the long-tern impact of adopting economic value added (EVA) by 89 US companies on a set of important firm decisions, namely, the investing, financing and operating decisions. The time horizon of this analysis spans the period 1960 -2012. The empirical evidence indicates that all the performance measures used in this thesis have a significant association with stock prices and returns. In addition, the results also reveal that when applying the price model, cash flows from operation (CFO) has the highest explanatory power among the variables considered. The remaining performance measures regarding their value relevance are in the following order: earnings before interest, tax, depreciation and amortization (EBITDA), earnings before interest and tax (EBIT) , net income (NI), earnings before extra ordinary items (EBEI), cash value added (CVA) and EVA. Furthermore, the results show that EBITDA dominates other variables when the return model is used. I
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:596050 |
| Date | January 2014 |
| Creators | Al-Omush, Ahmed Mushref |
| Publisher | University of the West of England, Bristol |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://eprints.uwe.ac.uk/22566/ |
Page generated in 0.0015 seconds