This paper reinvestigate the Economic Value Added(EVA), as a performance
measure of the organization's ability to create value. This measure is suggested to be used
as an alternative to the traditionally indicators based on the profitability of the
se
organizations.
The paper introduce the concept of EVA, the reasons of its appearance from both
theoretically and accounting view, the positive and negative points resulting from the use
of it by reviewing the most important studies on practical experiences of this measure.
The application of this measure has been done on the companies which is listed in
the Egypt Stock Exchange, to study the relationship between this measure and share price,
and the extent of its ability to interpret the changes in the prices of shares of these
companies during the period 2011-2014.
The study concluded that there are no statistically significant differences between the
stock prices of these companies and the economic value added, and therefore the
ineffectiveness of this measure as atool to evaluate the performance of these companies
and motivate managers.
The research is based on the main idea that the profits
themselves, as many shareholders, lenders and investors think,
are not a true measure of the quality of a company's profits.
This research aims to know the adequacy of liquidity risks issued by the Central Bank of Syria, which it uses in its supervision of banks operating in Syria and their contribution to the administrative decision-making process.
