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.
LONDON/MADRID (Reuters) - Spanish savings bank Banca Civica launched its initial public offering on Wednesday [June 15], competing with larger rival Bankia in a dash to attract private capital. The savings banks may have to price at less than half their book value to tempt investors, bankers said, given nerves surrounding Greece's attempts to thrash out terms of a debt restructuring.
...ER01JN95.002. Where:. ?Book Value of particular component? is the total of the... as defined in ? 32.9000.?Book Value of Debt+Book Value of Preferred Stock+Book Value of Equity...
...) is positively correlated with the level of debt. Despite the low debt holder/shareholder agency co... ratios (short term, long term, and total book values of debt over both book and market values of...
... are expected to not only maximize firm values but also, in the meantime, to lower greenhouse emi...q = (MVE + PS + DEBT)/TA . where MVE is the product of share price and ... net of its short-term assets plus the book value of the long term debt, and TA is the book va...
This study uses data from Chinese publicly listed companies for the period of September 2000-September 2008 to test the accuracy of Altman's Z-score model in predicting failure of Chinese companies. Prediction accuracy was tested for three Z-score variations: Altman's original model, a reestimated model for which the coefficients in Altman's model were recalculated, and a revised model which used different variables. All three models were found to have significant predictive ability. The reestimated model has higher prediction accuracy for predicting nonfailed firms, but Altman's model has higher prediction accuracy for predicting failed firms. The revised Z-score model has a higher prediction accuracy compared with both the reestimated model and Altman's original model. This study indi...
... ratios, most notably cash flow/total debt, gave statistically significant signals well befor...X4 = market value of equity/book value of total liabilities. X5 = sa...
Does hedging add value to the firm, and if so, is the source of the added value consistent with hedging theory? We investigate jet fuel hedging behavior of firms in the US airline industry during 1992-2003 to examine whether such hedging is a source of value for these companies. We illustrate that the investment and financing climate in the airline industry conforms well to the theoretical framework of Froot, Scharfstein, and Stein (1993). In general, airline industry investment opportunities correlate positively with jet fuel costs, while higher fuel costs are consistent with lower cash flow. Given that jet fuel costs are hedgeable, airlines with a desire for expansion may find value in hedging future purchases of jet fuel. Our results show that jet fuel hedging is positively related t...
... projects because of deadweight costs of debt. Froot et al. (1993) extend the Smith and Stulz (1... net income plus depreciation (scaled by book value of assets). Industry cash flow has also show...
We directly test the impact of increases in global and industrial diversification on firm value and operating performance. Our sample represents 194 US firms that acquired foreign companies during 1985-1998. Announcement period returns are significantly positive for the acquirers. Acquirer firms with fewer growth opportunities, as measured by Tobin's q, create more value than do firms with more growth opportunities. Announcement-period returns and changes in operating performance are lower for firms that increase their global, industrial, or both forms of diversification.
... use pretax operating cash flow scaled by the book value of assets as the measure of operating perfor... value of equity plus the book value of debt to the book value of assets. Following Lang, Stulz...
...Market premium is the ratio of the market value of equity plus the book value of debt divided by t...
... his wealth ahead of the shareholders' value since his compensation is tied to managerial perfo...Tobin's q ratio = [Market Value + Book value of Preference Capital + Book value of Long tterm Debt + Book value of Inventory + Book value of Current ...
ver las páginas en versión mobile | web
ver las páginas en versión mobile | web
© Copyright 2012, vLex. All Rights Reserved.
Contents in vLex United States
Explore vLex
For Professionals
For Partners
Company
Other interesting searches:
Ordina NV | federalismo educativo | Howard Hertz | Phil Nicklin | The Rockville | brizon haute savoie | locataires devoirs | Roffiac | Causas generales de las guerras
