A Survey of the Relationship between Corporate Governance with Created Shareholder Value (CSV) and Economic Value Added (EVA)

Baradaran Hassanzadeh, Rasool; Badavar Nahandi, Younes; Hossein Babaei, Ghader

doi:10.22059/acctgrev.2012.29196

A Survey of the Relationship between Corporate Governance with Created Shareholder Value (CSV) and Economic Value Added (EVA)

Authors

Rasool Baradaran Hassanzadeh

Younes Badavar Nahandi

Ghader Hossein Babaei

10.22059/acctgrev.2012.29196

Abstract

Subject of this paper is surveying of the relationship between some of the corporate governance mechanisms and created shareholder value (CSV) and economic value added (EVA). In this study, the created shareholders value measured by using Fernandez (2001) model and Economic value added measured by using Stewart (1982) model. The goal of this research is application and the type of research methodology is correlation. This study statistic population is firms listed in Tehran Stock Exchange (TSE), has been chosen during the years 2006 to 2010. To test hypotheses as classified multivariate regression advantage is backward elimination. The results show that the eight corporate governance mechanisms studied in this research, four mechanisms (government influence and government property, the amount of institutional shareholder ownership, capital structure and amount of free float) are related with created shareholders value. Also The eight corporate governance mechanisms of reviewed in this study 3 mechanisms (government influence and government property, institutional shareholder ownership rate and the amount of free float) are related with economic value added.

Keywords

Corporate governance

Economic Value Added

Shareholder Value Added