Abstract:
The modern performance measure EVA gained significant importance since last 2 decades. The present study aims to examine the impact of EVA on Stock Market Returns and investigate the presence of causality. The pooled data related to 50 companies listed on Nifty 50 has been collected for the period 2003-2017. To examine the impact, Fixed Effect Model and Random Effect Model has been used and Wald Test is considered to evaluate the causality between EVA and Stock Market Returns. Fixed Effect Model was found to be appropriate model for the study and it showed a positive impact of EVA on Stock Market Returns. The study also found the evidence of bi-directional causality between EVA and Stock Market Returns.
