The effectiveness of conventional accounting methods used for firm financial performance measurement and analysis has been criticized. Theorists started to put forward modern financial performance measures although their significance is still under examination by the researchers. Therefore, this study aims to investigate the impact of three contemporary economic based measures; economic value added (EVA), refined economic value added (REVA) and economic value added momentum (EVA Momentum) on firm financial performance in addition to finding out the economic value added based measure with the highest explanatory power relevant to firm financial performance via conducting relative and incremental information content analyses. Data were collected for companies listed in the Egyptian Stock Exchange over the period 2010-2019 excluding the financial sector. Generalized Least Squares (GLS) regression is conducted using the statistical package of EViews-version 10. The results showed significant impact of all the economic value added measures on firm financial performance. In addition, it was found that REVA could be considered as the most effective economic measure in improving and explaining the financial performance.

In 1991, Stewart launched the theory of economic value added (EVA) as a modern measure of financial performance assuring its ability in analyzing and improving the firm performance. Later on, in 2009, he introduced the economic value added momentum (EVA Momentum) as the single best firm financial performance measurement tool. Therefore, this study has the purpose of investigating the impact of EVA and EVA Momentum on firm financial performance indicators; return on assets (ROA) and return on equity (ROE) using Generalized Least Squares (GLS) regression. This paper is also aiming to contribute into announcing the economic value added measure with the highest explanatory power relevant to firm financial performance via conducting relative information content analysis along with Stepwise regression. Data were collected for companies listed in the Egyptian Stock Exchange over the period 2010-2019 excluding the financial sector. Statistical techniques are conducted using the statistical package of EViews-version 10. The results showed significant impact for both economic values added on firm financial performance, except for EVA with ROE. In addition, it was found that EVA Momentum could be considered as the most effective economic measure in improving and explaining the financial performance.