INFORMATION CONTENT OF ECONOMIC VALUE ADDED: EVIDENCE FROM INDIAN SOFTWARE INDUSTRY

There has not been sufficient empirical research to substantiate the claim that EVA is the best performance measure in terms of value relevance. This study is basically motivated the interest in EVA in the business press, increasing use of EVA by firms, increasing interest in EVA among academics and potential interest in EVA among accounting policy makers. We have tried to provide independent empirical evidence on the information content of EVA and two mandated performance measures like earnings and operating cash flow.