A comparison between traditional and economic performance measures for creating shareholder's value: a study on Malaysia plantations listed companies / Dg Siti Asmanirah Awang Ismail

This study is conducted to investigate the superiorities of the economic value performance and traditional performance measure for the shareholders wealth maximization. Due to the weaknesses of the traditional measure of performance such as the earning per share, return on equity and return on asset to measure stockholder creation, the value based measure was created. Using a sample of 10 plantations listed companies in main board of Bursa Malaysia and using a panel data for the period of 2011 to 2015. Fixed effect, Random effect and Pooled OLS test are performed and Random effects are accepted. The finding of the study revealed that there is positive and significant relationship between economic values added (EVA) and shareholders wealth maximization.