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The Relationship Research On Economic Added Value Of Company And Stock Return

Posted on:2006-12-17Degree:MasterType:Thesis
Country:ChinaCandidate:X M DengFull Text:PDF
GTID:2156360152470234Subject:Finance
Abstract/Summary:PDF Full Text Request
In the capital market research field, the angle of academia studying the investment decision problem is generally from two respects, namely, own characteristic law of stock return of security market and the factor by that stock return is influenced and how to be influenced in market environment. This research proceeds with second angle among them. The economic value added theory is considered to be a kind of creative contacting enterprise's financial performance and performance of stock market and hopeful to develop into the best measure of appraising company value under present economic environment, so it is used to prove the relation between the economic value added of the domestic listed company and its stock return ratio.In the course of studying, this paper does not take the final single result of the economic value added and takes some key indexes involved in the theory systematization. The indexes are divided into two parts, short-term interior index and long-term exterior index. Studying time is 2000 - 2002. At the same time, considering the economic value-added theory appraise the real value of enterprises, the traditional accounting index appraise the profit of enterprises, so on the basis of the above research, this paper compares the explanatory power of stock return by using two index.The empirical research shows: in the present domestic stock market, economic value added index system and stock return ratio exist certain connections, though compared with foreign empirical result there is some disparity, the index system has still offered certain the explanatory power to the return ratio of the stock on the whole; about short-term interior index and long-term exterior index, two groups of index systems offer different information separately, and hold the suitable proportion in explanatory information at the same time . The same as foreign empirical research result, two groups of index systems embody their different characteristics in explaining to the stock return ratio; Compared with traditional accountant financial performance evaluation index, economic value added index system comparatively shows stronger superiority in the environment of present market. In a situation that the traditional accountant's evaluation index has weaker explanatory power to the domestic stock return, economic value added index system offer nearly the whole message of explanatory ability on the basis of traditional accounting index system. This proves advance about the theory of economic value added. At the same time, the theory of economic value added is suitable to be used in the present domesticstock market.
Keywords/Search Tags:Economic value added, Market value added, Stock return ratio Enterprise's financial performance, Analysis of the relation
PDF Full Text Request
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