Measurement of financial performance using Economic Value Added index (EVA) – Case Study the firms listed on the CAC40 index during the period (2008-2013) –

Abstract

This study aims is to determine to what extent the economic value added index is able to measure the financial performance, by determining this index ability to explain stock returns, compared to traditional accounting measures of financial performance along with the market value added index. To achieve the objective of this study we select a sample of enterprises listed in CAC40 index and which were active in Paris Stock Exchange during the period 2008–2013. The results reveal the superiority of market value added index on the rest of the performance indexes (including the economic value added index) in explaining stock returns.