Annals of Management Science


Profit measurement indicators explored by researchers over a period of time like Created Shareholder Value (CSV), Shareholder Value Added (SVA), Economic Value Added (EVA), Market Value Added (MVA), Cash Value Added (CVA), Adjusted Economic Value Added (AEVA), Refined Economic Value Added (REVA), and Residual Income (RI) have been well explored by many scholars for examining the profitability of different companies. Each of these indicators has its own way of presenting and reflecting the performance and values of the companies. However, there are two other performance metrics, namely Equity Economic Value Added (EEVA) and True Value Added (TVA), which have not yet been adequately investigated for the Indian capital market. The focus of this paper is on a study of Tobin’s q using two economic profit measurement indicators, namely: Equity Economic Value Added (EEVA) and True Value Added (TVA). Data was collected on Tobin’s q of 50 selected listed companies of National Stock Exchange (NSE), India, between 2003 to 2013. The analysis of the data was based on the belief that its sample size is large enough for the assumption of normality. The results of our data analysis shows that there is presence of significant association between EEVA, TVA and Tobin’s q.