Abstract

The unawareness of value-based performance measures when allocating investments could lead to destroying value. This paper presents comparison of three groups of performance measures being accounting-traditional measures, market-based measures and value-based measures with special focus on EVA Momentum calculated as (ΔEVA / Trailing Sales). The study covers UAE stock exchanges from 2008 to 2013. A methodology is designed to determine the right transformation of panel data then deciding on the appropriate regression technique among Fixed Effects, Random Effects or Pooled OLS model. Advanced modeling techniques as Driscoll-Kraay and Prais-Winsten models are used to examine serial correlation and heteroskedasticity.

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