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EVA and Stock Returns in Emerging Markets: The Indian Evidence

T. G. Saji

IUP Journal of Accounting Research & Audit Practices2014article
ABDC C
Weight
0.50

What the paper says

This study seeks empirical evidence on the causal relations between Economic Value Added (EVA) and stock returns in the Indian context. Based on pooled time series, cross-sectional data on 70 well-performing companies in National Stock Exchange (NSE) over the economic slowdown period 2008-13, the study tests the hypothesis that EVA affects stock returns under linear regression framework, using alternative models. The results suggest that EVA, along with cost of capital, provides statistically significant information content and adds explanatory power in predicting stock returns in India. However, there exists some time lag before adjusting the impact of these measures on stock returns. The findings of this research corroborate the EVA reporting relevance within the context of an emerging capital market like India.

5 citations

Cite this paper

@article{t.2014,
  title        = {{EVA and Stock Returns in Emerging Markets: The Indian Evidence}},
  author       = {T. G. Saji},
  journal      = {IUP Journal of Accounting Research & Audit Practices},
  year         = {2014},
}

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EVA and Stock Returns in Emerging Markets: The Indian Evidence

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.38 × 0.4 = 0.15
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.