Using economic value added as a portfolio separation criterion.: An article from: Quarterly Journal of Finance and Accounting

This digital document is an article from Quarterly Journal of Finance and Accounting, published by University of Nebraska-Lincoln on March 22, 2008. The length of the article is 4542 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

From the author: This paper explores whether economic value added (EVA) can be used to generate two portfolios with statistically different cumulative returns. The analysis is done using a portfolio separation test that examines the statistical significance of the regression coefficient generated when the cumulative returns from one portfolio are regressed against the cumulative returns from the other portfolio. We conclude EVA does provide economically useful information that can be used to forecast portfolio separation. Specifically, forming portfolios based on higher and lower values of EVA divided by the average book value of debt and equity from a buy list yields portfolios with cumulative returns that are statistically different.

Citation Details
Title: Using economic value added as a portfolio separation criterion.
Author: Drew Fountaine
Publication:Quarterly Journal of Finance and Accounting (Magazine/Journal)
Date: March 22, 2008
Publisher: University of Nebraska-Lincoln
Volume: 47 Issue: 2 Page: 69(13)

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