The Relationship between EVA and Stock Returns: Empirical Evidence from KSE

  • Muhammad Akbar
  • Muhammad Kamran Khan
  • Shahid Ali

Abstract

This paper aims at Investigating and finding empirical support of the relationship between Economic Value Added (EVA) and stock prices/returns in Pakistani firms. There have been studies conoucrec to empirically investigate the relationship of EVA with stock returns. However, there is lack of literature on the empirical relalionship between EVA and stock returns in Pakistan. The study uses linear regression methods to lest the hypothesis thai EVA statistically significantly retates to stock prices/returns. The sample comprises 0116 companies of fuel and energy sector traded in the Karachi stock exchange over sample period 2001 to 2008. Tile findings 01 the study suggest that stock returns and stock prices are positively related with EVA. However, the relationShip is stronger between stock prices and lag EVA as well as between stock returns and change in lag EVA
Published
2010-04-22
How to Cite
AKBAR , Muhammad; KHAN , Muhammad Kamran; ALI , Shahid. The Relationship between EVA and Stock Returns: Empirical Evidence from KSE . Business & Economic Review, [S.l.], v. 2, n. 2, p. 1-5, apr. 2010. ISSN 2519-1233. Available at: <http://bereview.pk/index.php/BER/article/view/36>. Date accessed: 29 mar. 2024.
Section
Articles