• shelly
• dr. nidhi walia

ABSTRACT In this paper, the relationship between variables economic value added (EVA) , earnings per share (EPS) , return on investment (ROI), operating cash flows (OCF) and shareholders’ value i.e. Market value Added (MVA) is studied. The study interprets results obtained from an analysis carried out on the basis of secondary financial data relating to the period 2003-2013. The research is inferential-inductive in terms of methodology and is cross-sectional correlation in terms of test statistical method. The studied statistical population consists of all the companies listed in Bombay Stock Exchange. The statistical sample consists of 100 companies. Simple and multi-variable regression methods are used to test the hypothesis. The results indicate that both economic value added and Operating cash flows have significant relationship with the shareholders’ wealth i.e. MVA. However, the operating cash flows is more significant than the economic value added in relation with the shareholders value. Both relative and incremental content approaches have been tested. Relative information content tests revealed that shareholders’ value are more closely associated with OCF than EVA. On the other hand, incremental information content tests provide evidence that EVA adds significant explanatory power to OCF in explaining shareholders’ value.

Key words: Economic Value Added (EVA), Market Value Added (MVA), Operating Cash Flows(OCF)

"Value Relevance of EVA and traditional measures of Financial performance after global financial crisis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.400-407, April-2019, Available :http://www.jetir.org/papers/JETIR1904J53.pdf

"Value Relevance of EVA and traditional measures of Financial performance after global financial crisis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp400-407, April-2019, Available at : http://www.jetir.org/papers/JETIR1904J53.pdf