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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Main Authors:	Panigrahi, Shrikant, Yuserrie, Zainuddin, Noor Azlinna, Azizan
Format:	Article
Language:	English
Published:	Human Resource Management Academic Research Society 2014
Subjects:	HD Industries. Land use. Labor
Online Access:	http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/1/fim-2014-shrikant-comparing%20traditional.pdf

id	ump-11064
recordtype	eprints
spelling	ump-110642018-08-29T04:17:01Z 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 http://hrmars.com/hrmars_papers/Article_26_Comparing_Traditional_and_Economic_Performance.pdf DOI: 10.6007/IJARAFMS/v4-i4/1345
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HD Industries. Land use. Labor
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
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.
format	Article
author	Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan
author_facet	Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan
author_sort	Panigrahi, Shrikant
title	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_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_sort	comparing traditional and economic performance measures for creating shareholder’s value: a perspective from malaysia
publisher	Human Resource Management Academic Research Society
publishDate	2014
url	http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/ http://umpir.ump.edu.my/id/eprint/11064/1/fim-2014-shrikant-comparing%20traditional.pdf
first_indexed	2023-09-18T22:11:24Z
last_indexed	2023-09-18T22:11:24Z
_version_	1777415052331057152

Comparing Traditional and Economic Performance Measures for Creating Shareholder’s Value: a Perspective from Malaysia

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