EVA vs. Accounting Metrics in Listed Companies. Evidence from Europe

DOI: 10.5176/2251-1997_AF-38

Authors: Marco Tutino

Abstract:

The paper investigates the relation between the SharePrice and three performance indicators: Net Operating Profitexpressed by EBIT, Cash Flow From Operation and EconomicValue Added. The sample includes 42 listed industrial companieschosen in four European financial markets, such as UnitedKingdom, Germany, France and Italy, all listed in the period1992-2001.

Keywords: EVA, Accounting Metrics, Value Creation, SharePrice Performance, European Markets, Operating Profit,Operating Cash Flow