Financial Innovation

Table 2 EVA Valuation Model under Constant Required Return

From: Does the EVA valuation model explain the market value of equity better under changing required return than constant required return?

	R	R²	Adjusted R²	F-Value	D-W	Sig.
Large Cap
2013	0.754	0.568	0.561	76.404	1.546	0.000
2008	0.713	0.508	0.501	68.262	1.426	0.000
2003	0.882	0.778	0.775	217.81	1.741	0.000
Mid Cap
2013	0.471	0.228	0.217	20.723	1.559	0.000
2008	0.651	0.424	0.417	60.390	1.816	0.000
2003	0.832	0.692	0.688	170.89	1.626	0.000
Small Cap
2013	0.429	0.184	0.171	14.645	2.139	0.000
2008	0.521	0.272	0.261	25.36	1.94	0.000
2003	0.693	0.48	0.472	60.97	2.12	0.000

Note: Table 3 reports the result of regression analysis between market value of equities and expected market value of equities of large cap, mid cap, and small cap companies determined by EVA based valuation model with a varying required return

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