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

Muhammad Akbar (), Muhammad Kamran Khan and Shahid Ali
Additional contact information
Muhammad Akbar: Bahria University, Islamabad
Muhammad Kamran Khan: Institute of Management Sciences, Peshawar
Shahid Ali: Institute of Management Sciences, Peshawar

Business & Economic Review, 2010, vol. 2, issue 2, 1-5

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

Keywords: Economic Value Added; stock returns; prices (search for similar items in EconPapers)
JEL-codes: G10 G21 G32 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://imsciences.edu.pk/files/journals/Vol.%202%2 ... 2010/Paper%20(1).pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bec:imsber:v:2:y:2010:i:2:p:1-5

Access Statistics for this article

More articles in Business & Economic Review from Institute of Management Sciences, Peshawar, Pakistan Institute of Management Sciences 1-A, Sector E-5, Phase VII, Hayatabad, Peshawar- Pakistan. Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Attaullah Shah ().