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بررسیهای حسابداری و حسابرسی | ||
Article 5, Volume 13, Issue 4 - Serial Number 1715, March 2007 PDF (154.47 K) | ||
Abstract | ||
This study examines the implications of value-based financial measures such as return on equity, return on assets, market-value-added, and economic-value-added on the Dow Jones Industrial, Transportation, and Utilities company stock prices. It also examines stakeholder satisfaction on firm performance using several financial proxies. Using cross-sectional data and regression analysis, the results indicate that all value-based performance measures have a significant relationship with prices. The results also show that stockholder satisfaction, measured by return on equity, has a strong and positive correlation with share values. Consumer satisfaction, measured by sales volume, also showed a strong relationship with stock prices. However, the significance of the relationship between bondholder satisfaction measured by the time-interest-earned ratio and prices varied from positive to negative and was insignificant. The effect of taxes as a proxy for corporate social responsibilities on share values was mostly insignificant. Overall, the results show that stock price maximization as the primary goal of a firm may lead to the satisfaction of stockholders and consumers. However the relationship between price maximization strategy and bondholders and society satisfaction require further investigations. | ||
Keywords | ||
Bondholder Satisfaction; Stockholder Satisfaction; Stock Price; Value Based Performance Measures | ||
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