Economic value added and prediction of stock returns : evidence from the Singapore stock market.

Abstract

While much research has been done on the stock market, these were mainly focused on the efficient market hypothesis. Not much research has been done in Singapore to examine the claim of financial statement analysis (fundamental analysis). Fundamental analysis entails the discovery of intrinsic values of firms by information in the financial statements, and that although stock prices deviate at times from the true values, it will slowly gravitate towards the fundamental values.