The Patternnology of Change Rate for Economic Added Value

Abstract

This study seeks to answer this question that is Economic Value Added Momentum (EVAM) more highly associated with Tehran Stock Exchange firm values than with accounting ratios. The purpose of this study is to provide empirical evidence on the information content of EVAM and accounting ratios (ROA, ROE, ROS, EPS, SGR and MS). So that 150 firms (600 firm-years) listed in Tehran Stock Exchange from 1386 to 1389 were studied. Regression analysis indicates that MS are better than other accounting ratios and EVAM in explaining the market value (Market Capitalization and Total Capitalization) Tehran Stock Exchange firms, It also ROE don’t has significant effect on the market value.

Keywords

• return on assets
• return on equity
• return on sale
• earning per share
• sale growth rate
• market share