Abstract:
This paper examines the relationship between economic profit, cash profit, and accounting profit and also tests the relevance of these earnings. By using the 12 years data of the companies forming a part of Nifty of the National Stock Exchange (NSE) of India, the study provides answers to some of the questions: Is there a meaningful correlation between the economic profit, cash profit, and accounting profit? Can economic profit, cash profit, and accounting profit act as the proxy for the market value added?