Date of Award
1-1-2000
Thesis Type
Masters
Document Type
Thesis
Divisions
Faculty of Business and Economics
Department
-
Institution
Universiti Malaya
Abstract
In 1961, Prof. Franco Modigliani and Prof. Merton H. Miller (MM) said in their article Dividend Policy, Growth and The Evaluation of Shares: "To measure corporate performance for market capitalization, companies should consider earnings, cash flows, dividends and investment opportunities as alternatives". Stern Stewart, an advocate of Economic Value Added (EVA) approach to shareholder value understands the issues raised under the MM model which has led him to the view that "free cash flows is cash from operations that is available, attributable to both leaders and shareholders. In other words, it is the cash that is free for distribution to investors after all investments have been financed. Thus, when it is discounted to a present value at the company's cost of capital, free cash flow is the foundation of any company's market value".
Additional Information
Dissertation (M.A) -- Faculty of Business and Economics, Universiti Malaya, 2001.
Recommended Citation
Thomas, Amalanathan, "Economic value added : superior measurement of shareholders' value" (2000). Student Works (2000-2009). 110.
https://knova.um.edu.my/student_works_2000s/110
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
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