PurposeThe main aim of this paper is to examine the claim that economic value added (EVA) advocates its superiority over the traditional accounting-based financial performance measures, i.e. profit after tax (PAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE) and return on investment (ROI) in the Indian manufacturing sector and at the same time, give empirical facts. It also tests and examines the information content of various performance measures and their relationship with stock returns.Design/methodology/approachThe paper uses the sample of 534 Indian manufacturing companies from the Bombay Stock Exchange (BSE) during the period 2000–2018. Multiple regression models are applied to examine the information content of EVA and traditional performance measures in explaining shareholders’ returns.FindingsRelative information content tests revealed that traditional accounting-based measures such as EPS, ROE and ROA performed better than EVA in explaining the returns of Indian manufacturing companies. Incremental information content of EVA adds little contribution to information content above traditional performance measures. The claim of superiority of EVA over accounting-based measures in association with shareholder returns is proved invalid in Indian manufacturing companies.Originality/valueThis study concludes that EVA has no superiority over traditional accounting-based financial performance measures in explaining stock returns of Indian manufacturing companies. To achieve heftiness in outcomes, panel data are tested by using Breusch–Pagan–Godfrey (BPG) test for heteroskedasticity, Hausman’s test for fixed and random effect, variance inflation factor (VIF) test for multicollinearity and Durbin–Watson test for autocorrelation.

's et. al. (1997), Bao and Bao (1998) Solomon (1965) suggested that residual income be used as an internal performance measure and Anthony (1973, 1982, and 1982) suggested that it is suitable to measure external performance.

The main objective of this study to compare and access the traditional financial performance measures such as Profits after Tax (PAT), Earnings per Share (EPS), Return on Assets (ROA), Return on Equity (ROE), and Return on Investment (ROI) in Indian manufacturing industries. Design/Methodology: The total 534 Indian manufacturing companies considered for this study and grouped into various industries. Study period started from 1999-2000 to 2017-2018 financial years. Descriptive analysis including t-test is used in research to compare and access traditional financial performance measures of Indian manufacturing industries. Findings: Financial performance measured by traditional accounting-based financial performance measures exhibits sound financial health of Indian manufacturing companies. Though, the financial performance decreases in 2007-2008 but afterward sample companies able to revive the sound financial vitality. Some industries outperform the other as well as aggregate sample companies' vis-à-vis traditional financial performance measures. The average matrices of industries presents mix results as some are not significantly different whereas, some are significantly different. Originality: This is the first paper which examines the comparison and accessibility of the Traditional Financial Performance Measures in Indian manufacturing industries.

The main objective of this study to compare and access the value-based financial performance measures such as Economic Value Added (EVA), Cash Value Added (CVA), Shareholders Value Added (SVA), Cash Flow Return on Investment (CFROI), and Economic Profit (EP) in Indian manufacturing industries. Design/Methodology: The total 534 Indian manufacturing companies considered for the study and these grouped into various industries. Study period started from 1999-2000 to 2017-2018 financial years. Descriptive analysis including t-test is used as a statistical tool to compare and access valuebased financial performance measures of Indian manufacturing companies. Findings: Financial performance measured by Value-based financial performance measures exhibits sound financial health of Indian manufacturing companies. Though, the financial performance decreases in 2007-2008 but afterward sample companies able to revive the sound financial vitality. Some industries outperform the other as well as aggregate sample companies' vis-à-vis value-based financial performance measures. The average of matrices of industries presents mix results as some are not significantly different whereas, some are significantly different. Originality: This is the first paper which examines the comparison and accessibility of the value-based financial performance measures in Indian manufacturing industries.