Abstract

LEZAMA PALOMINO, Juan Carlos; LAVERDE SARMIENTO, Miguel Ángel  and  GARCIA CARILLO, Jorge Fernando. The relationship between Economic Value Added (EVA) and the Colombian Stock Market Return from 2009 to 2020. Rev.fac.cienc.econ. [online]. 2023, vol.31, n.1, pp.53-67.  Epub Oct 23, 2023. ISSN 0121-6805.  https://doi.org/10.18359/rfce.6305.

One of the accepted methods for evaluating company performance is Economic Value Added (EVA), a metric that quantifies the value creation generated by the company. It is expected that as this indicator improves, so does the company's valuation, thereby increasing its market value. In this regard, studies have been conducted to measure the effect of EVA on stock price behavior, yielding mixed results. However, there is no consensus on this matter, as the outcomes have varied depending on the country, period, and methodologies used. This research examines the relationship between EVA and returns in the Colombian stock market for the period 2009-2020, employing a correlational analysis and an econometric model. Among the main findings, it was observed that the financial sector has created the most value in recent years, and the EVA spread shows a positive and statistically significant correlation with NOPAT, ROE, and ROIC. Additionally, it was found that EVA does not impact the behavior of returns in the major sectors participating in the Colombian stock exchange.

Keywords : stock returns; Economic Value Added; PCSE (Panel Corrected Standard Errors); Spearman correlation; EVA Spread..

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