Skip to main content

Corporate governance and earnings management and the relationship between economic value added and created shareholder value

Buy Article:

$43.00 plus tax (Refund Policy)

The main interest in this paper is to test whether earnings management and governance mechanisms may help bridge the gap between accounting values, approximated by economic value added (EVA) and market values, approximated by created shareholder value (CSV). First, the results clearly show a non-significant relationship between EVA and CSV. Secondly, a positive correlation is identified between the difference (CSV-EVA) and discretionary accruals, proxy of earnings management. Thirdly, it is found that some governance mechanisms can attenuate the gap between CSV and EVA, whereas others can accentuate it. Finally, the results reveal that the different cases of convergence and divergence between CSV and EVA can be explained by governance mechanisms and earnings management.Journal of Asset Management (2006) 7, 242–254; doi:10.1057/palgrave.jam.2240216
No References
No Citations
No Supplementary Data
No Data/Media
No Metrics

Document Type: Research Article

Affiliations: 1: 1is Professor of Finance, Institut Supirieur de Gestion, Tunis. 2: 2is a PhD student, Institut Supirieur de Gestion, Tunis.

Publication date: 2006-09-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more