Authors: Mehdi Arabsalehi and Iman Mahmoodi
This study examines whether it is really better to use value-based measure than traditional accounting-based measures for evaluating firm performance. However, three value-based measures and four accounting measures are employed. The study uses a sample consisting of 722 year-firm observations of Iranian listed firms in the Tehran Stock Exchange over the period 2001-2008. The results provide a new perspective on the financial performance measures. In the other words, this study raises an important question which it may offer more evidence to the literature.
Keywords: Performance Measures, Value-Based Management, Accounting Measures, Stock Return, Market Value, Tehran Stock Exchange