Efficacy of Economic Measures of Performance in Determining the Market Value Added (Mva) of Shares

Abstract

Management accounting is witnessing landmark changes in the recent past. One of the areas of management accounting which is always in the spotlight is 'performance measurement'. The conventional accounting measures of performance are losing their importance due to their inherent limitations. They do not take into account the opportunity cost of capital contributors' in deriving the proAtability measures. The everlasting research in this area has been producing well-reflected measures of performance whose efficacy is tested by empirical research by the academia and professional bodies of accounting.