Economic Value Added, Cash Value Added And Financial Performance
Salemcity, A., Ph.D., ACA,
Department of Accounting, Adekunle Ajasin University, Akungba-Akoko, Ondo State
Japinye, A.O., Ph.D., FCA
Banking Supervision Department, Central Bank of Nigeria
Adebolanle Adekemisola Debo-Ajagunna, ACA
Bursary Department, Federal University Oye-Ekiti, Ekiti State, Nigeria
Keywords: Economic value added, cash value added, return on asset, value based measures
Abstract
The study examined the synergetic effects of economic value added (EVA) and cash value added (CVA) on financial performance of selected listed manufacturing companies in Nigeria between 2008 and 2022. The objective was to establish effects of economic value added and cash value added on the financial performance. The ex-post facto research design was adopted to carry out the research work. Secondary data were gathered from the annual reports of purposefully selected fifteen (15) listed companies on the Nigerian Exchange Group for the study and analytically estimated using the general multiple regression model involving ordinary least square with the aid of E-view 13.0 econometric software. It was revealed that economic value added has a negative but significant effect on return on assets while cash value added was statistically non-significant. The study revealed that value-based accounting measures are key financial performance indices that should be employed to ensure transparency and financial accountability in the Nigerian manufacturing companies.