Relative and Differential Information Content of Economic Value Added, Earnings, Operating Cash Flow and Stock Return
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Keywords

Economic value added, Differential (increasing) data content, Relative information content, Stock return, Earnings, Cash flow operating.

How to Cite

Samadiyan , B. ., pooryeganeh, N. ., Ebrahimi, H. ., & Ghanbari, Y. . (2013). Relative and Differential Information Content of Economic Value Added, Earnings, Operating Cash Flow and Stock Return. International Journal of Asian Social Science, 3(1), 29–37. Retrieved from https://archive.aessweb.com/index.php/5007/article/view/2400

Abstract

The lack of satisfaction about using the traditional performance assessment has resulted in presenting several suggestions about new performance assessment criteria. Economic value added is one of the most important items among these criteria. In this research the superiority of economic value added as an economic criterion of performance assessment, was tested in comparison with other accounting performance assessment criteria. Our sample involves 120 companies accepted in Tehran Stock Exchange during the time period between the years 2003 and 2010. We have used panel regression to test the relative data content of economic value added and other accounting criteria and also to test differential (growing) data content of economic value added elements. The results of testing the research hypotheses showed that accounting profit (net profit and net operational profit after taxation) has more data content to describe the traits of stock return compared to economic value added and operational cash flows. The promissory goods and operational cash flows also have differential (growing) data content compared to other economic value added elements in describing the traits of stock return.

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