Table 1. Results of studies on...

Table 1.

Results of studies on shareholder value performance measurements, 1991–2019

Authors	Internal independent variable(s)	External dependent variable(s)	Result	Country
Stewart (1991)	EVA, EPS, ROE and others	MVA	EVA	USA
Stern (1993)	EVA, ROE, cash flow growth, EPS growth, asset growth	MVA	EVA	USA
Lehn and Makhija (1996)	EVA, MVA, ROA, ROE	Stock return	EVA, MVA	USA
Milunovich and Tsuei (1996)	EVA, EVA growth, ROE, FCF	MVA	EVA	USA
O’Byrne (1996)	EVA, NOPAT, FCF	Market value÷ IC	EVA	USA
Bacidore, Boquist, Millbourn, and Thakor (1997)	REVA, EVA	Stock returns	REVA	USA
Biddle, Bowen, and Wallace (1997)	EVA, EBEI, RI, OCF	Market-adjusted stock returns	EBEI	USA
Chen and Dodd (1997)	EVA, change in EVA, ROC, SPREAD, capital GROWTH, EPS, ROA, ROE	Stock return	ROA, EVA	USA
Kramer and Pushner (1997)	NOPAT, EVA	MVA	NOPAT	USA
Bao and Bao (1998)	NI, EVA, value added	Equity value; share price	Value added (accounting)	USA
De Villiers and Auret (1998)	EPS, EVA per share	Share price	EPS	South Africa
Hall (1999)	EVA, discounted EVA, ROA, ROE, ROCE, EPS, DPS and others	MVA	EVA (same result as discounted EVA)	South Africa
Turvey, Lake, Van Duren, and Sparling (2000)	ROA, ROE, EVA, CAPM	Stock return	No significant relation	Canada
Fernandez (2001)	EVA, NOPAT, WACC	MVA	NOPAT	USA
Worthington and West (2004)	EVA, RI, NCF, EBEI	Stock returns	EVA	Australia
De Wet (2005)	EVA, CFO ÷ IC, ROA	MVA	CFO ÷ IC	South Africa
Ismail (2006)	EVA, RI, NI, NOPAT, OCF	Stock returns	NI, NOPAT	UK
Kyriazis and Anastassis (2007)	EVA, NI, OI	Stock returns; MVA	NI, OI	Greece
Chmelikova (2008)	EVA, ROA, ROE	Market value of equity ÷ equity	EVA	Czech Republic
Visaltanachoti, Luo, and Yi (2008)	CFO, EBIT, RI, EVA	Market-adjusted returns	EBIT	USA
Erasmus (2008)	CVA, EVA, RI, EBEI, CFO	Market-adjusted returns	RI	South Africa
Dumitru and Dumitru (2009)	CFO, EPS, DPS, EVA, ROA	MVA	CFO	Romania
Lee and Kim (2009)	EVA, REVA, MVA, CFO, ROA, ROE	Market-adjusted returns	REVA, MVA	USA
Maditinos, Sevic, and Theriou (2009)	EVA, EPS, ROI, ROE, SVA	Stock returns	EVA with EPS	Greece
Kumar and Sharma (2011)	EVA, NOPAT, OCF, ROE, ROCE	MVA	NOPAT, OCF	India
Abdoli et al. (2012)	EVA, RI	Created shareholders value	RI	Iran
Arabsalehi and Mahmoodi (2012)	EVA, REVA, MVA, SVA, EPS, ROE, ROA, Cash from operations, return on sales	Stock returns	ROA, ROE	Iran
Khan et al. (2012)	EVA, NI, OCF	Stock returns	OCF	Pakistan
Othman et al. (2012)	EVA	Stock returns	No or low relation	Malaysia
Bhasin (2013)	ROCE, ROE, EPS, EVA	MVA	ROCE, ROE	India
Nakhaei and Hamid (2013)	NI, OI, EVA	Share market value	NI, OI	Iran
Parvaei and Farhadi (2013)	EVA, FCF, RI, NI	Stock returns	EVA	Iran
Shubita (2013)	NI, RI, EVA	Stock returns	NI	Jordan
Aloy Niresh and Alfred (2014)	EVA	MVA	No significant relation	Sri Lanka
Panigrahi et al. (2014)	EVA, EPS, ROE, ROA, ROCE	Created shareholder value	EVA	Malaysia
Saji (2014)	EVA, cost of capital	Stock returns	EVA	India
Altaf (2016)	EVA, OI, FCF, EPS, ROA, ROCE and others	MVA	OI	India
Gupta and Sikarwar (2016)	EPS, ROA, ROE, EVA	Stock returns	EVA	India
Hall (2016)	EPS, ROA, NOPAT, EVA, ROCE	MVA	EPS, ROA, NOPAT	South Africa
Iroshani and Rajapakse (2016)	EPS, ROE, ROA	MVA	No relation	Sri Lanka
Al-Awawdeh and Al-Sakini (2018)	EVA, MVA, ROA, ROE, EPS	Shareholder value	ROA, EVA	Jordania
Obaidat (2019)	EVA, NOPAT, NCF	MVA	NCF	Jordania
Siburian and Yohanes (2019)	EVA, CFO, ROA, ROCE, ROE, Spread	MVA	CFO, EVA, ROA	Indonesia

Authors	Internal independentvariable(s)	External dependent variable(s)	Result	Country
Stewart (1991)	EVA, EPS, ROE and others	MVA	EVA	USA
Stern (1993)	EVA, ROE, cash flow growth, EPS growth, asset growth	MVA	EVA	USA
Lehn and Makhija (1996)	EVA, MVA, ROA, ROE	Stock return	EVA, MVA	USA
Milunovich and Tsuei (1996)	EVA, EVA growth, ROE, FCF	MVA	EVA	USA
O’Byrne (1996)	EVA, NOPAT, FCF	Market value÷ IC	EVA	USA
Bacidore, Boquist, Millbourn, and Thakor (1997)	REVA, EVA	Stock returns	REVA	USA
Biddle, Bowen, and Wallace (1997)	EVA, EBEI, RI, OCF	Market-adjusted stock returns	EBEI	USA
Chen and Dodd (1997)	EVA, change in EVA, ROC, SPREAD, capital GROWTH, EPS, ROA, ROE	Stock return	ROA, EVA	USA
Kramer and Pushner (1997)	NOPAT, EVA	MVA	NOPAT	USA
Bao and Bao (1998)	NI, EVA, value added	Equity value; share price	Value added (accounting)	USA
De Villiers and Auret (1998)	EPS, EVA per share	Share price	EPS	South Africa
Hall (1999)	EVA, discounted EVA, ROA, ROE, ROCE, EPS, DPS and others	MVA	EVA (same result as discounted EVA)	South Africa
Turvey, Lake, Van Duren, and Sparling (2000)	ROA, ROE, EVA, CAPM	Stock return	No significant relation	Canada
Fernandez (2001)	EVA, NOPAT, WACC	MVA	NOPAT	USA
Worthington and West (2004)	EVA, RI, NCF, EBEI	Stock returns	EVA	Australia
De Wet (2005)	EVA, CFO ÷ IC, ROA	MVA	CFO ÷ IC	South Africa
Ismail (2006)	EVA, RI, NI, NOPAT, OCF	Stock returns	NI, NOPAT	UK
Kyriazis and Anastassis (2007)	EVA, NI, OI	Stock returns; MVA	NI, OI	Greece
Chmelikova (2008)	EVA, ROA, ROE	Market value of equity ÷ equity	EVA	Czech Republic
Visaltanachoti, Luo, and Yi (2008)	CFO, EBIT, RI, EVA	Market-adjusted returns	EBIT	USA
Erasmus (2008)	CVA, EVA, RI, EBEI, CFO	Market-adjusted returns	RI	South Africa
Dumitru and Dumitru (2009)	CFO, EPS, DPS, EVA, ROA	MVA	CFO	Romania
Lee and Kim (2009)	EVA, REVA, MVA, CFO, ROA, ROE	Market-adjusted returns	REVA, MVA	USA
Maditinos, Sevic, and Theriou (2009)	EVA, EPS, ROI, ROE, SVA	Stock returns	EVA with EPS	Greece
Kumar and Sharma (2011)	EVA, NOPAT, OCF, ROE, ROCE	MVA	NOPAT, OCF	India
Abdoli et al. (2012)	EVA, RI	Created shareholders value	RI	Iran
Arabsalehi and Mahmoodi (2012)	EVA, REVA, MVA, SVA, EPS, ROE, ROA, Cash from operations, return on sales	Stock returns	ROA, ROE	Iran
Khan et al. (2012)	EVA, NI, OCF	Stock returns	OCF	Pakistan
Othman et al. (2012)	EVA	Stock returns	No or low relation	Malaysia
Bhasin (2013)	ROCE, ROE, EPS, EVA	MVA	ROCE, ROE	India
Nakhaei and Hamid (2013)	NI, OI, EVA	Share market value	NI, OI	Iran
Parvaei and Farhadi (2013)	EVA, FCF, RI, NI	Stock returns	EVA	Iran
Shubita (2013)	NI, RI, EVA	Stock returns	NI	Jordan
Aloy Niresh and Alfred (2014)	EVA	MVA	No significant relation	Sri Lanka
Panigrahi et al. (2014)	EVA, EPS, ROE, ROA, ROCE	Created shareholder value	EVA	Malaysia
Saji (2014)	EVA, cost of capital	Stock returns	EVA	India
Altaf (2016)	EVA, OI, FCF, EPS, ROA, ROCE and others	MVA	OI	India
Gupta and Sikarwar (2016)	EPS, ROA, ROE, EVA	Stock returns	EVA	India
Hall (2016)	EPS, ROA, NOPAT, EVA, ROCE	MVA	EPS, ROA, NOPAT	South Africa
Iroshani and Rajapakse (2016)	EPS, ROE, ROA	MVA	No relation	Sri Lanka
Al-Awawdeh and Al-Sakini (2018)	EVA, MVA, ROA, ROE, EPS	Shareholder value	ROA, EVA	Jordania
Obaidat (2019)	EVA, NOPAT, NCF	MVA	NCF	Jordania
Siburian and Yohanes (2019)	EVA, CFO, ROA, ROCE, ROE, Spread	MVA	CFO, EVA, ROA	Indonesia

Notes:

CAPM: capital asset pricing model; CFO: cash flow from operations; CVA: cash value added; DPS: dividend per share; EBEI: earnings before extraordinary items; EPS: earnings per share; EVA: economic value added; FCF: free cash flow; IC: invested capital; MVA: market value added; NCF: net cash flow; NI: net income attributable to ordinary shareholders; NOPAT: net operating profit after tax; OCF: operating cash flow; OI: operating income; REVA: refined economic value added; RI: residual income; ROA: return on assets; ROC: return on capital; ROE: return on equity; SPREAD: ROCE minus weighted average cost of capital, WACC; SVA: shareholder value added; value added: an accounting profit measure

Source: Own compilation

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