Substantial pressure to maximize shareholder wealth compels firms to adopt a valuebased management system. As centerpiece of such a system, a value-based performance measure quantifies periodic value addition for shareholders. Prevalent value-based measures imply distortions from accounting depreciation and empirical evidence on prevailing measures is somewhat biased. Consequently, this study aims to develop depreciation-adjusted performance measures and to provide empirical evidence on prevailing and newly introduced measures. Specifically, this study concludes examining the relationship between bottom-line accounting measures of corporate performance with stock prices. However, in a broader sense, it also relates to strategic management and key drivers and dynamics of capital markets.


Cash Flow Stock Prex Equity Capital Shareholder Wealth Residual Income 
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© Gabler | GWV Fachverlage GmbH 2009

Authors and Affiliations

  • Annette Holler

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