Studying the Relationship between the Refined Economical Value Added and Earning Per Share and Price /Earning Ratio in Tehran Stock Exchange

Abstract:The research is aimed at studying the relationship between the refined economical value added (REVA) and earning per share (EPS) price/earning ratio (P/E). In the current research, the relationship between the refined economical value added and performance ordinary criteria including EPS and P/E has evaluated using data obtained from 50 firms in stock exchange bourse during 2006-2010. The obtained results suggested that there isn’t any significant relationship between refined economical value added and EPS and P/E. Although the correlation wasn’t confirmed by the statistical analysis, but this doesn’t mean that there isn’t any significant relationship between the research variables. The correlation and determinant coefficients percentages suggest that there is only a weak relationship between the refined economical value added performance ordinary criteria including EPS and P/E. however, the correlation between REVA and P/E is stronger than the correlation between REVA and EPS.