Abstract
The present research aims at studying the significant differences of the performance assessment value creation in different levels of financial health of companies. Companies in this research have been divided into three groups of healthy, intermediate and distressed. The Economic Value Added (EVA), Market value Added (MVA) and Cash Value Added (CVA) differences of these three levels have been analyzed. From the 37 industrial entities and 224 Iranian companies, 84 companies have been selected through Cochran formula and they have been divided into 16 healthy, 45 intermediate and 19 distressed companies. The Excel software and SPSS software was used to test the hypotheses and Kruskal-Wallis statistical method was applied to compare the value added classified ratios at the level of 5% error. Research finding shows the significant statistical differences among the companies at different levels of financial health using MVA and EVA criteria, but there is no significant different in CVA of the above mentioned companies.
Highlights
The results show that Economic Value Added (EVA) is a more concise index to predict CSV in the companies accepted in Tehran Stock Exchange (TSE)
The results show that the net profit with the determination coefficient of 53.86% is more defining the total in comparison to operational profit (51.35%) and EVA (54.22%)
The purpose of the present research is: to identify and determine proper dependable criteria of the kind of value creation having the ability to evaluate the events of economical units taken out of financial reports; the capital markets for all stakeholders; activists in financial markets in order to promote the capability of the company to pay the return and expected by investors and creditors; to make a proper background to continue activity; to evaluate it in Iranian environmental conditions
Summary
The study and analysis of value creating criteria of performance assessment in identification of different levels of financial health: Evidence from Iran. Taghavi1 1Department of Accounting, Faculty of Management and Economics, Science and Research Branch, Islamic Azad
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