Financial Innovation

Table 3 EVA Valuation Model under Changing 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	AdjustedR²	F-Value	D-W	Sig.
Large Cap
2013	0.875	0.765	0.761	188.625	2.24	0.000
2008	0.739	0.547	0.540	79.539	1.50	0.000
2003	0.890	0.792	0.789	236.388	1.994	0.000
Mid Cap
2013	0.699	0.489	0.482	67.879	1.735	0.000
2008	0.738	0.544	0.539	97.88	1.775	0.000
2003	0.843	0.711	0.707	187.13	1.616	0.000
Small Cap
2013	0.589	0.347	0.337	34.53	2.17	0.000
2008	0.592	0.35	0.341	36.67	1.986	0.000
2003	0.683	0.467	0.459	57.839	2.01	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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