A study of the indicators of financial performance using the traditional and share value metrics

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Defense Panel Member

Placido M. Menaje, Jr.
Rodiel C. Ferrer
Arnel Onesimo Uy

Abstract/Summary

This study is directed towards the relationship of changes in return on equity (ΔROE), earnings per share (ΔEPS), and economic value-added (ΔEVA), as well as EVA momentum (ΔEVA/ prior year sales) to the changes in stock prices of local companies. It aims to examine the different indicators of financial performance with an emphasis on the recent studies made on EVA, which has been claimed to be a “better” approach in evaluating a firm‟s financial standing internationally and a guide for practitioners in decision-making. Criterion-based sampling was used to gather several local companies with different financial standings. A panel data regression model was applied in analyzing the financial statements of companies, with ΔROE, ΔEPS, ΔEVA and EVA momentum as the predictor variables of stock prices. Based on the results, both ΔEPS and EVA momentum showed a significant relationship with the changes in stock prices. Thus, the new metric EVA momentum could be used by future investors in predicting stock prices and further studied by researchers in order to determine its implications.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13252; CDTU013252

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

112 leaves : ill. 29 cm. + 1 computer optical disc

Keywords

Economic value added; Managerial economics; Business enterprises--Valuation; Corporations-- Valuation

Upload Full Text

wf_no

This document is currently not available here.

Share

COinS