A study of corporation valuation based on EVA model

Abstract

Economic Value Added (EVA) reflects the value increasing from shareholders' perspective and makes a far-reaching impact on global economy. In practice of EVA, the method based on comparison and trend is common, while using time series model is a simple way. The difficult part is the high quality data is required, so many studies just referred to feasibility of the time series method theoretically. This paper validates the feasibility of time series method from the real case. ARMA model is used as short time series analysis method in this paper. © Springer-Verlag 2012.