Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation
Valuation of securities by economic value added (EVA) model and Free cash flow (FCF ) model i s a current procedures in free economy societies. Using such models requires long and complex calculations, therefore, they seem to be difficult to implement in the first sight. One of t...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2004-03-01
|
| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_4069_a940ec8818fde3f48679cf7a54a35753.pdf |
| _version_ | 1797378373761105920 |
|---|---|
| author | M. Dastgir N. Izadinia |
| author_facet | M. Dastgir N. Izadinia |
| author_sort | M. Dastgir |
| collection | DOAJ |
| description | Valuation of securities by economic value added (EVA) model and Free cash flow (FCF ) model i s a current procedures in free economy societies. Using such models requires long and complex calculations, therefore, they seem to be difficult to implement in the first sight. One of the objectives of the present study is to see whether by using accrual accounting reports, in the present situation i n Iran, is i t possible to value business entities and their share values. To support the EVA and FCF models empirically, we need to study the relationship between the value creation measures (internal measures of operation evaluation ) and values the judgment of financial markets (external measures of operation evaluation ) .
This research is in the field of accounting and financial management and its hypotheses are and in connection with the relationship between value creation measures, i.e. EVA and FCF measures, financial market measures such as, market value (MV) and market value added (MVA).
The results of this study suggests that with some adjustments to accounts and financial reports we are able to value business entities and their shares in a given time period, and report the gap between share values, based on the EVA and the FCF models , and market values of those shares. The specific results from testing the hypotheses in this study dictate that i n most industries there is a meaningful relationship between internal measures of creating value market measures of business entities under study. |
| first_indexed | 2024-03-08T20:06:56Z |
| format | Article |
| id | doaj.art-54fc8eaa5a0348249fc2fb7b71294e4b |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:06:56Z |
| publishDate | 2004-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-54fc8eaa5a0348249fc2fb7b71294e4b2023-12-23T10:32:34ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192004-03-01251311554069Relationship between Internal Measures of Value Creation and External Measures of Operation EvaluationM. Dastgir0N. Izadinia1استادیار گروه حسابداری دانشگاه شهید چمرانعضو هیئت علمی گروه حسابداری دانشگاه اصفهانValuation of securities by economic value added (EVA) model and Free cash flow (FCF ) model i s a current procedures in free economy societies. Using such models requires long and complex calculations, therefore, they seem to be difficult to implement in the first sight. One of the objectives of the present study is to see whether by using accrual accounting reports, in the present situation i n Iran, is i t possible to value business entities and their share values. To support the EVA and FCF models empirically, we need to study the relationship between the value creation measures (internal measures of operation evaluation ) and values the judgment of financial markets (external measures of operation evaluation ) . This research is in the field of accounting and financial management and its hypotheses are and in connection with the relationship between value creation measures, i.e. EVA and FCF measures, financial market measures such as, market value (MV) and market value added (MVA). The results of this study suggests that with some adjustments to accounts and financial reports we are able to value business entities and their shares in a given time period, and report the gap between share values, based on the EVA and the FCF models , and market values of those shares. The specific results from testing the hypotheses in this study dictate that i n most industries there is a meaningful relationship between internal measures of creating value market measures of business entities under study.https://qjma.atu.ac.ir/article_4069_a940ec8818fde3f48679cf7a54a35753.pdfvaluation of business entitieseconomic value addedfree cash flowsmarket valuesmarket value addedshare values |
| spellingShingle | M. Dastgir N. Izadinia Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation مطالعات تجربی حسابداری مالی valuation of business entities economic value added free cash flows market values market value added share values |
| title | Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation |
| title_full | Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation |
| title_fullStr | Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation |
| title_full_unstemmed | Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation |
| title_short | Relationship between Internal Measures of Value Creation and External Measures of Operation Evaluation |
| title_sort | relationship between internal measures of value creation and external measures of operation evaluation |
| topic | valuation of business entities economic value added free cash flows market values market value added share values |
| url | https://qjma.atu.ac.ir/article_4069_a940ec8818fde3f48679cf7a54a35753.pdf |
| work_keys_str_mv | AT mdastgir relationshipbetweeninternalmeasuresofvaluecreationandexternalmeasuresofoperationevaluation AT nizadinia relationshipbetweeninternalmeasuresofvaluecreationandexternalmeasuresofoperationevaluation |