Financial perspective said that the primary goal of most firms is to maximize shareholder’s wealth (Brigham and Ehrhardt, 2005). EVA is a practical refinement of economists’ concept of residual income- the value remaining after a company’s stockholders and all the other providers of capital have been compensated. EVA is a performance measure and, when linked to management pay, provides a strong incentive for managers to select and implement value-creating investments (Hatch, James E, 1996). The objective of this study is to examine the Correlation between economic value Added (EVA) and Market Value Added (MVA), Return of Assets (ROA), Return on equity (ROE) and earning per share (EPS) that the independent variables were Return on Assets (ROA), Return on Equity (ROE) and Earning Per Share (EPS) and the dependent variable was Economic Value Added (EVA). The samples of the study are listed firms19 in plant, transform and automobile industries that actively trading in Tehran stock exchange. To analyses of data used the multiple regression and Pearson Correlation. The results of study indicated that there are meaningful relationship between Economic Value Added (EVA) as dependent variable and Market Value Added (MVA) and Return on Equity (ROE)but that there are not meaningful relationship between Economic Value Added (EVA) as dependent variable and Return on Assets (ROA) and Earning Per Share (EPS).Also there were the correlations between” market value added (MVA)- earning per share (EPS)” and” market value added (MVA)- return of equity (ROE)”
Economic Value Added (EVA), Market Value Added (MVA), Return on Assets (ROA), Return on Equity (ROE) and Earning Per Share (EPS)
