Test the ability of traditional measures and modern measures to explain the market value added Case Study of the entreprises listed on the Algiers Stock Exchange during the period (2002-2017)

Abstract

The present study aims to test the ability of  traditional measures and modern measures of performance to explain the market value added as an indicator of market performance, the modern measures are the economic value added, refined economic value added and the total return of shareholders, the traditional measures represented in the return on equity, the earning per share,  and the net operating profit after tax. The sample of enterprises used in this study is the entreprises listed on the Algiers Stock Exchange during the period from 2002 to 2017. To test the relation we use the panal data analysis. Our present study finds that modern measures have outperformed the traditional measures in interpreting the change in market value added