The relationship between EVA and EPS and DPS of listed companies in Tehran Stock Exchange

Abstract

Maximizing the profit from investment firms are major target of shareholders. Now, the leading indicator of economic value added is internal performance measurement. The most fundamental decision-making criteria that may be involved as investors include  EPS, DPS dividends of the shareholders. Since the company's EVA economic value can be measured properly, therefore, we decided to study the relationship between EPS and DPS and EVA, a way to achieve the main goal of maximizing the wealth of the investors through investments made ​​to increase the earned profits.  In this article, EPS and DPS data of 21 companies from 50 leading companies in Tehran Stock Exchange for the years 2009 to 2012 were collected according to available information. The results of the study showed a significant relationship between EPS and DPS with no economic value.