This study investigates if Economic Value Added (EVA) is superior to Net Operating Profit after Tax (NOPAT) and Net Cash Flow (NCF) in explaining the change in the Market Value Added
(MVA) of the non-financial firms listed on Amman Stock Exchange (ASE) for the year 2016.
Furthermore, other research supports the use of the IIRC-PBR model by proving that the five nonfinancial capitals defined by the IIRC are related to market value added
. One empirical study, "Relation between Human/Intellectual Capitals and Corporate Value (PBR)," (see "Further Research") sampled Japanese companies across the board and showed that the more a company's intangibles were formed from personnel (human capital) and research and development (R&D) (intellectual capital) expenses, the higher the company's MVA.
Market Value Added
(MVA) = Market value of company--Capital employed (1)
Earning per shares, Market value added
, Net income, Relative and incremental information content, Stock return.
The study concluded that no factor influenced Market Value Added
and Earning Per Share and that the profitability of the selected companies could not be increased unless the improved problems like modernization cost reduction control taxes and the like were solved.
An Interindustry Analysis of Economic Value Added as a Proxy for Market Value Added
, Journal of Applied Finance, xx, 41-49.
Market value added
(MVA) is the difference between the equity market valuation of a company and the sum of the adjusted book value of debt and equity invested in the company.
Hence, linking the productivity growth with market value added
could be quite useful from the policy perspective for business firms.
Though the basic motive of this research is to establish the relationship between market value added
and shareholder value added, the foremost object is to present a general picture of how shareholder value is created as a background for measuring shareholder value.
Saudi Telecom Company (STC) posted its biggest rise in profit in the first quarter in a year after the second-largest Arab telecom firm by market value added
(2004) show that market value added
(MVA) provides economically useful information that can be used to form two portfolios from a buy list with statistically different cumulative returns.
Researchers used two metrics to evaluate companies: Economic Value Added, a value-based performance tool used to compute the true economic profit of a firm, as opposed to its accounting profit (such as net income): and Market Value Added
, which measures the market value that a firm has created.