Remittances Review

ISSN:2059-6588 | e-ISSN: 2059-6596

ISSN:2059-6588 | e-ISSN: 2059-6596

AN INVESTIGATION OF THE FACTORS AFFECTING ECONOMIC VALUE ADDED: EVIDENCE FORM NON-FINANCIAL LISTED FIRMS IN PAKISTAN

Authors:
Wajid Alim, Saleh Nawaz Khan, Muhammad Aslam, Kashif Nawaz, Muhammad Amir , Mohammad Muflih salameh Al Hameedyeen
Keywords
Economic Value Added (EVA), Risk, Leverage, Tangibility, Liquidity, Size ,

Abstract

The current study aims to examine the impact of liquidity (LIQ), leverage (LEV), size, tangibility (TANG), and risk on the economic value added (EVA) in non-financial listed firms in Pakistan. Data of 100 non-financial firms were obtained from the websites of the respective firms. The span of the study is from 2010 to 2023 covering 13 years. The study employed ordinary least square method (OLS). The findings show that on liquidity (LIQ), leverage (LEV), and tangibility (TANG) has considerable and significance influence on Economic value added (EVA). Whereas Risk has no significance influence economic value added. The current study is novel because it uses a more comprehensive gauge economic value added (EVA) to measure performance. The study suggested that financial sectors should take economic value added (EVA) into account as a key component of financial performance.