آيا ارزش افزوده اقتصادي جايگزين مناسبي براي سود مي باشد؟

Does Economic Value Added Suitable Replacement to Earnings?

Recently, financial reporting has been criticized for low-quality and lack of relevance in todayʹs information-rich environment. The traditional measures should be revised due to this subject. One of the measure that have shown interest by companies, investors, academics and accounting policy makers as replacement of earnings and cash flows from operations as proxies for traditional measure is economic value added. This study provides evidence that we hope will be useful to companies, Investors and accounting policy makers who may be interested in economic value added or residual income as replacements to earnings and cash flows from operations as key measures of firm performance. Our finding from relative information content test show no evidence of residual income and economic value added dominating earnings and cash flows from operation. In other word, this finding show equal information content for the all measure. Also, incremental information content results show slightly incremental information content for the special component of residual income and economic value added beyond earnings and cash flows from operation.