Buscar en
Global Economics and Management Review
Toda la web
Inicio Global Economics and Management Review The impact of performance measures, leverage and efficiency on market value adde...
Journal Information
Vol. 20. Issue 1.
Pages 6-14 (January - June 2015)
Download PDF
More article options
Vol. 20. Issue 1.
Pages 6-14 (January - June 2015)
DOI: 10.1016/j.gemrev.2015.04.001
The impact of performance measures, leverage and efficiency on market value added: Evidence from Iran
Mohammad Alipoura,
Corresponding author
, Mohammad Ebrahim Pejmanb
a Young Researchers and Elite Club, Khalkhal Branch, Islamic Azad University, Khalkhal, Iran
b Department of Accounting and Finance, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran
Article information
Full Text
Download PDF
Tables (5)
Table 1. Definition of the research variables.
Table 2. Descriptive statistics.
Table 3. Correlation matrix.
Table 4. Test results of the relative information content of EVA, EPS, DPS, ROA, ROE, ROCE and ROS.
Table 5. Regression analysis.
Show moreShow less

The purpose of this paper is to investigate economic value added (EVA), as a performance measurement model, as compared to six traditional accounting performance measures vis-à-vis the market value of firms listed on Tehran Stock Exchange (TSE). The paper also explores the effect of the degree of operating leverage, financial leverage, and efficiency on market value added.

The paper uses a sample of 450 firm-year observations from the Iranian market and applies pooled ordinary least square and panel data regression. The results indicate that EVA has no superiority over other performance measures, and that return on sales and return on assets are more powerful than EVA in explaining firm market value. Due to EVA's lack of correlation with market value, investors cannot use it as an internal value creation measure along with the traditional performance measures. This paper is one of the first studies on the relevance of traditional accounting and value-based performance measures in explaining TSE market values. The results extend EVA's role in explaining market values, and address its effect on investors’ decisions in a continental Asian market with characteristics similar to that of Iran.

Market value added
Economic value added
Traditional measures of performance
Degree of operating and financial leverage
Emerging market
JEL classification:


These are the options to access the full texts of the publication Global Economics and Management Review

If you already have your login data, please click here .

If you have forgotten your password you can you can recover it by clicking here and selecting the option “I have forgotten my password”
Comprar acceso al artículo

Comprando el artículo el PDF del mismo podrá ser descargado

Precio 22,50 €

Comprar ahora
Phone for subscriptions and reporting of errors
From Monday to Friday from 9 a.m. to 6 p.m. (GMT + 1) except for the months of July and August which will be from 9 a.m. to 3 p.m.
Calls from Spain
932 415 960
Calls from outside Spain
+34 932 415 960
Article options
es en pt

¿Es usted profesional sanitario apto para prescribir o dispensar medicamentos?

Are you a health professional able to prescribe or dispense drugs?

Você é um profissional de saúde habilitado a prescrever ou dispensar medicamentos

es en pt
Política de cookies Cookies policy Política de cookies
Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle publicidad relacionada con sus preferencias mediante el análisis de sus hábitos de navegación. Si continua navegando, consideramos que acepta su uso. Puede cambiar la configuración u obtener más información aquí. To improve our services and products, we use "cookies" (own or third parties authorized) to show advertising related to client preferences through the analyses of navigation customer behavior. Continuing navigation will be considered as acceptance of this use. You can change the settings or obtain more information by clicking here. Utilizamos cookies próprios e de terceiros para melhorar nossos serviços e mostrar publicidade relacionada às suas preferências, analisando seus hábitos de navegação. Se continuar a navegar, consideramos que aceita o seu uso. Você pode alterar a configuração ou obter mais informações aqui.