Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia
This study investigates the importance of economic value added for the shareholders wealth maximization. Economic value added (EVA) is a value based performance measurement tool that inclines the agency conflict issues between managers and shareholders. Using a sample of 28 construction public liste...
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| Format: | Article |
| Language: | English |
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Human Resource Management Academic Research Society
2014
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| Online Access: | http://umpir.ump.edu.my/id/eprint/11064/1/fim-2014-shrikant-comparing%20traditional.pdf |
| _version_ | 1796990916958879744 |
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| author | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_facet | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_sort | Panigrahi, Shrikant |
| collection | UMP |
| description | This study investigates the importance of economic value added for the shareholders wealth maximization. Economic value added (EVA) is a value based performance measurement tool that inclines the agency conflict issues between managers and shareholders. Using a sample of 28 construction public listed companies in main board of Bursa Malaysia and using panel data with fixed effects during the period of 2003 to 2012, the findings of the study revealed that there is a positive and significant relationship between EVA and shareholder’s wealth maximization. The more the managers produce EVA, the more shareholders’ wealth maximization will be created. The finding shows significant support for EVA, but EVA was not reported by the companies and is not been used by investors for their investment decisions. Thus it is recommended for the managers to focus more attention to the criteria of EVA in evaluating shareholder’s value.
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| first_indexed | 2024-03-06T11:58:37Z |
| format | Article |
| id | UMPir11064 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T11:58:37Z |
| publishDate | 2014 |
| publisher | Human Resource Management Academic Research Society |
| record_format | dspace |
| spelling | UMPir110642018-08-29T04:17:01Z http://umpir.ump.edu.my/id/eprint/11064/ Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan HD Industries. Land use. Labor This study investigates the importance of economic value added for the shareholders wealth maximization. Economic value added (EVA) is a value based performance measurement tool that inclines the agency conflict issues between managers and shareholders. Using a sample of 28 construction public listed companies in main board of Bursa Malaysia and using panel data with fixed effects during the period of 2003 to 2012, the findings of the study revealed that there is a positive and significant relationship between EVA and shareholder’s wealth maximization. The more the managers produce EVA, the more shareholders’ wealth maximization will be created. The finding shows significant support for EVA, but EVA was not reported by the companies and is not been used by investors for their investment decisions. Thus it is recommended for the managers to focus more attention to the criteria of EVA in evaluating shareholder’s value. Human Resource Management Academic Research Society 2014 Article PeerReviewed application/pdf en cc_by http://umpir.ump.edu.my/id/eprint/11064/1/fim-2014-shrikant-comparing%20traditional.pdf Panigrahi, Shrikant and Yuserrie, Zainuddin and Noor Azlinna, Azizan (2014) Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4 (4). pp. 280-289. ISSN 2225-8329. (Published) http://hrmars.com/hrmars_papers/Article_26_Comparing_Traditional_and_Economic_Performance.pdf DOI: 10.6007/IJARAFMS/v4-i4/1345 |
| spellingShingle | HD Industries. Land use. Labor Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title | Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title_full | Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title_fullStr | Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title_full_unstemmed | Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title_short | Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia |
| title_sort | comparing traditional and economic performance measures for creating shareholder s value a perspective from malaysia |
| topic | HD Industries. Land use. Labor |
| url | http://umpir.ump.edu.my/id/eprint/11064/1/fim-2014-shrikant-comparing%20traditional.pdf |
| work_keys_str_mv | AT panigrahishrikant comparingtraditionalandeconomicperformancemeasuresforcreatingshareholdersvalueaperspectivefrommalaysia AT yuserriezainuddin comparingtraditionalandeconomicperformancemeasuresforcreatingshareholdersvalueaperspectivefrommalaysia AT noorazlinnaazizan comparingtraditionalandeconomicperformancemeasuresforcreatingshareholdersvalueaperspectivefrommalaysia |