Further thoughts on the relationship between economic value added and stock market performance

David Sparling and Calum Turvey

Agribusiness, 2003, vol. 19, issue 2, 255-267

Abstract: As authors of a previous study questioning the strength of the relationship between EVA and shareholder value, and in light of the arguments posed by Keefe and Roush, we revisit the relationship between EVA and shareholder return and reexamine the evidence and issues surrounding the use of EVA as a tool for valuing investments. Using the Stern Stewart Fortune 1000 data, we examine two potential relationships for 33 food companies listed in the database. The first is between the absolute level of EVA in 2000 and 3-, 5-, and 10-year shareholder returns. The second is between 3-, 5-, and 10-year mean percentage changes EVA and 3-, 5-, and 10-year shareholder returns. The correlations found were extremely weak in all instances tested. [EconLit citations: 9120, 9320, M410, Q130]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 255-267, 2003.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1002/agr.10054 Link to full text; subscription required (text/html)

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:wly:agribz:v:19:y:2003:i:2:p:255-267

DOI: 10.1002/agr.10054

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().