Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/11477
Title: Economic value added as a predictor of stock returns
Authors: Lak, Yau Huang
Lim, Kok Chuan
Tan, Danny Siang Lim
Keywords: DRNTU::Business::Finance::Dividends
Issue Date: 1998
Abstract: This research studies the effectiveness EVA as a predictor of superior stock returns and compares it against other indicators like P/E. The sample consists of 50 companies that are the largest in terms of market capitalisation as at June 1991. The period of the study is from 1991 to 1996. The 50 stocks are ranked according to EVA/Market Capitalisation (EVA/MktC). The annual returns of the top ten stocks in each year are then statistically tested against the annual returns of the bottom ten stocks. The overall results suggest that EVA is not an effective predictor of stocks with superior returns. Neither is it superior to P/E or P/B.
URI: http://hdl.handle.net/10356/11477
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Student Reports (FYP/IA/PA/PI)

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