Paper Title :Examination of EVA Dominating other Select Financial Ratios of Nifty Firms

Author :Santosh Nair, S. L. Menaria, Bigyan P Verma

Article Citation :Santosh Nair ,S. L. Menaria ,Bigyan P Verma , (2021 ) " Examination of EVA Dominating other Select Financial Ratios of Nifty Firms " , International Journal of Management and Applied Science (IJMAS) , pp. 57-69, Volume-7, Issue-2

Abstract : This paper is an attempt to examine the domination of EVA over other select financial ratios, MVA, FCFE, OCE & ROE in explaining the stockprice(withonelag) of Nifty listed firms over a period of 18 years. The model was constructed based on generalized least squareseconometric equation using fixed effect model. This panel regression equation was run which produced a very statistically significant result at 10% alpha. The results displayed that EVA did dominate over its other counterparts, FCFE, ROCE and ROE; in the case of MVA it could not outperform it. The results were consistent with similar studies conducted in India and concurs with the larger proponents of EVA. Keywords - JEL G320, Financial Ratios, Value of Firm, Capital, EVA, WACC

Type : Research paper

Published : Volume-7, Issue-2

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