Corporate governance and earnings management and the relationship between economic value added and created shareholder value

2006 ◽  
Vol 7 (3-4) ◽  
pp. 242-254 ◽  
Author(s):  
Ali El Mir ◽  
Souad Seboui
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
The Relationship

CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI DARI PENGARUH ECONOMIC VALUE ADDED TERHADAP SHAREHOLDER VALUE

2013 ◽  
Author(s):  
Idamiharti Idamiharti
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Positive Influence ◽  
Economic Value Added ◽  
Test Results ◽  
Governance Practices ◽  
Financial Company

This research is conducted to obtain empirical evidence that (1) there is an influence of Economic Value Added on shareholder value, (2) the influence of corporate governance practices as a moderating variable of Economic Value Added and shareholder value relationship. The sample used in this research is non financial company that listed in Indonesia Stock Exchange (ISE) period 2003 - 2007. A regression analysis with interaction is use to test the hypothesis. Hypothetical test results show that Economic Value Added have a positive influence on shareholder value. Besides that, test results also show that corporate governance is a moderating variable to the influence of Economic Value Added on shareholder value. In other word, we can say that corporate governance practices can strengthen the influence of Economic Value Added on shareholder value. 

scholarly journals Corporate Governance, Earnings Management, and Economic Value Added Indonesian Evidence

2019 ◽  
Author(s):  
Krismiaji . ◽  
Maria Purwantini ◽  
Adi Prabhata
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Economic Value ◽  
Value Added ◽  
Cash Flows ◽  
Least Square ◽  
Real Earnings Management ◽  
Fiscal Year ◽  
Economic Value Added ◽  
Negative Effect

This paper describes the research which investigates the effect of earnings management and corporate governance (CG) on economic value added (EVA) in companies listed on the Indonesia Stock Exchange for the fiscal year ending 31 December 2015 to 2017. Earnings management used in this study is accrual earnings management (MLA) as measured by the Modified Jones Model and real earnings management (MLR) as measured by management earnings operating cash flows. CG is measured by the CG index. Data is obtained by purposive sampling process and comesfromsecondarydatabothfromtheIDXandfromthewebsitesofeachcompany. The research hypothesis was tested using generalized-least square (GLS). The results showed that accrual earnings management had a positive effect on EVA while real earnings management had a negative effect on EVA. The results also show that CG has a negative effect on EVA if tested together with MLA, but CG does not affect EVA if tested together with MLR. This research is expected to contribute to the existing literature by completing and enriching findings on the effect of earnings management and corporate governance on EVA.

scholarly journals The Influence of Economic Value Added and Return on Assets on Created Shareholders Value: A Comparative Study in Jordanian Public Industrial Firms

2017 ◽  
Vol 9 (4) ◽  
pp. 63 ◽  
Author(s):  
Sliman S. Alsoboa
Keyword(s):  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Assets ◽  
Industrial Firms ◽  
Value Added Model ◽  
Market Value Added ◽  
And Performance ◽  
The Relationship ◽  
Financial Measure

This study has two main objectives. The first one is to address the relationship between Economic Value Added (EVA) and Created Shareholders Value (CSV) in Jordanian public industrial firms (JPIF), comparing to the Return on Assets (ROA) over the period 2011-2015. The second objective is to address the possible superiority of EVA to ROA by explaining the changes in CSV for JPIF. In this study, CSV is measured using two models; Fernandez model and market value added model. Multiple and simple regressions were used in the study. These analyses have shown, generally, that the superiority of EVA in predicting and evaluating the CSV could be put into a conclusive and positive light compared to ROA. However, the results suggested that one financial measure cannot be enough to measure neither CSV nor firms’ performance. Therefore, this study highly recommends that JPIF use a combination of different measure in assessing and evaluating their value and performance, especially modern indicators.

scholarly journals A Review of the Relationship between Ownership Structure and Economic Performance Criteria in Companies Listed on Tehran Stock Exchange

2016 ◽  
Vol 8 (6) ◽  
pp. 89
Author(s):  
Ali Yaghoobi ◽  
Ehsan Khansalar
Keyword(s):  
Ownership Structure ◽  
Economic Performance ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Performance Criteria ◽  
Economic Value Added ◽  
Cross Sectional ◽  
Independent Variables ◽  
The Relationship

<p>The aim of this study is to investigate the relationship between ownership structure and economic performance criteria of companies listed on Tehran Stock Exchange. This study is a descriptive- applied research that reviews the cross-sectional data relating to 114 listed companies between 1387-1393. Multivariate regression is used to analyze the effect of each of these factors on economic performance.</p>The results show that from three applied independent variables in the regression model, there is a significant relationship in a<strong> </strong>95% confidence level between Institutional ownership and property management and economic value added and modified economic value added but there is not any relationship between ownership concentration variable and economic performance criteria. The obtained determination coefficient for the above relationship shows that the independent variables explain only part of the economic performance, and investors need to consider other factors as well to evaluate the economic performance of the company.

scholarly journals Corporate Governance Mechanisms and Value Creation: An Empirical Evidence

2019 ◽  
pp. 1-14 ◽  
Author(s):  
Musa Usman Kabir ◽  
Norhani Binti Aripin ◽  
Redhwan Ahmed Ali Al-Dhamari
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Economic Value ◽  
Value Added ◽  
Manufacturing Firms ◽  
Board Independence ◽  
Managerial Ownership ◽  
Economic Value Added ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

The study examines the perceived effects of corporate governance mechanisms on the value of manufacturing firms in Nigeria by adopting economic value added as the measure of firm value. Corporate governance mechanisms such as concentrated ownership, managerial ownership, the board size, board independence, and foreign ownership as they influence corporate valuation were empirically investigated. 89 listed manufacturing firms in Nigeria were selected for 5 years (2012-2016) for the analysis. The study utilized different tests such as OLS panel data regression and multiple regression model to establish the relationship with panel corrected standard error (PCSE). The study is guided by resource enrichment theory and agency theory. The finding of the study shows that ownership concentration, the board size, and board independence positively impacted on firm value as measured by economic value added. However, managerial ownership and foreign ownership reported negative and insignificant impacts on the value of Nigerian manufacturing firms.

scholarly journals PERBEDAAN ECONOMIC VALUE ADDED BERDASARKAN SIKLUS HIDUP PERUSAHAAN DAN PASAR

2018 ◽  
Vol 8 (2) ◽  
pp. 393
Author(s):  
Harning Priyastuty ◽  
Bambang Subroto ◽  
Wuryan Andayani
Keyword(s):  
Life Cycle ◽  
Financial Performance ◽  
Economic Value ◽  
External Environment ◽  
Value Added ◽  
Economic Value Added ◽  
Analysis Method ◽  
Strategic Risk ◽  
The Relationship ◽  
Manufacture Company

Abstract. This study aims to examime whether corporate and market life cycle situation have impact on financial performance. The situation that is experienced by company has impact on future financial performance. This matter is due to the risk that is taken by the company to confront that situation. The relationship between risk and return in this study will be explained by prospect theory. This study use the population of manufacture company listed in BEI period 2013-2015. This study use 115 sample of manufacture company. Those samples will be classified based on nine combination of corporate and market life cycle and will be tested with comparative test. The data analysis method of this study is mean rank comparative with kruskal wallis test. The result shows that corporate and market cycle have no impact on future financial performance. The result shows that there is no difference of financial performance based on corporate and market life cycle. This matter is caused by act of determine strategic risk that need a lot of another internal and external environment consideration

scholarly journals أثـر الأدوات الداخلية لحوكمة الشركة على رأس المال الـعـامـل وانعكاسهما علـى القيـمـة الاقتصـادية المضـافـة: دراســة تطبيقيـة علـى عينــة مـــن الشـركــات الصنــاعــيــة المـدرجــة في بورصــة عـمّــان لــلأوراق المـالـيـة

2013 ◽  
Vol 19 (73) ◽  
pp. 166
Author(s):  
ارشد فؤاد التميمي ◽  
احمد فارس القيسي
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Positive Relation ◽  
Working Capital ◽  
The Third ◽  
The Impact ◽  
Internal Instruments

Abstract Objective of this research focused on testing the impact of internal corporate governance instruments in the management of working capital and the reflection of each of them on the Firm performance. For this purpose, four main hypotheses was formulated, the first, pointed out its results to a significant effect for each of corporate major shareholders ownership and Board of Directors size on the net working capital and their association with a positive relation.  The second, explained a significant effect of net working capital on the economic value added, and their link inverse relationship, while the third, explored a significant effect for each of the corporate major shareholders ownership and Board of Directors size on the economic value added. The fourth, revealed a significant effect of the internal instruments for corporate governance on the economic value added in light of the different net working capital.

scholarly journals Economic value added: A financial flexibility tool

2014 ◽  
Vol 12 (1) ◽  
pp. 703-708 ◽  
Author(s):  
Reeta Shah ◽  
Arunima Haldar ◽  
S.V.D. Nageswara Rao
Keyword(s):  
Financial Performance ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Performance Measure ◽  
Corporate Financial Performance ◽  
Economic Value Added ◽  
Financial Flexibility ◽  
The Right ◽  
The Impact

With increased emphasis on shareholder value addition, there has been an ongoing debate on choosing the right measure of corporate financial performance. There is need for a single measure of financial performance that not only measures corporate financial performance but also works as a financial flexibility tool. The financial performance measure employed by the firm measures the value generated by the firm. This necessitates the firms to choose the right performance tool which can reflect the accurate value added by the firm. We study the role and implications of Economic Value Added as a financial performance measure and further discuss its applicability as a tool for introducing financial flexibility. Flexibility is assessed by measuring the impact of organization’s competitiveness and performance. The findings reveal that EVA as a tool enables the corporate to differentiate between value-creating and value-destructing activities and helps managers in taking right decisions which enhances shareholder value. Thus, finally the research makes a case for managers to use EVA as a tool to provide additional information to investors. Interestingly, EVA can also be adapted as a corporate philosophy for motivating and educating employees

Relationship between EVA (Economic Value Added) and Share Prices of Select Companies in BSE-SENSEX - An Empirical Study

2015 ◽  
Vol 4 (3and4) ◽  
Author(s):  
Mathangi Aravind ◽  
K. Ramya
Keyword(s):  
Performance Metrics ◽  
Explanatory Power ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Share Prices ◽  
The World ◽  
The Impact ◽  
The Relationship

In todays competitive world, corporate companies all around the world are trying to maximize the wealth of their shareholders in order to gain market value as well as satisfy their stakeholders. With the gaining popularity of value based performance measures like Economic Value Added (EVA), Total Shareholder Return (TSR), Cash Value Added (CVA) etc., many corporate companies in India have started assessing their value in terms of these measures. This paper investigates the relationship between EVA and share prices of select companies in BSE-SENSEX for a period of six years from 2008 to 2013. The study focuses on the explanatory power of EVA with respect to share prices of the selected companies. In turn, the performance of the selected companies belonging to different sectors in BSE-SENSEX was analyzed using EVA. The volatile nature of the capital markets characterized by various speculative activities have a greater influence on share prices, eventually undermining the impact of performance metrics on them. Thus, the findings of the study enumerates that EVA does not have a considerable explanatory power on share prices.

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