Performance Measure and Stock Prices : Cash Flow, EVA<sup>TM</sup>, and Ohlson Model

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  • 業績指標と株価―キャッシュ・フロー,EVA<sup>TM</sup>，およびOhlsonモデル―
  • 業績指標と株価--キャッシュ・フロー,EVA,およびOhlsonモデル
  • ギョウセキ シヒョウ ト カブカ キャッシュ フロー EVA オヨビ Ohlson モデル

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<p>Recently, profit maximization for shareholders is drawing attention as a standard to measure the performance of a firm. In this survey, I picked three valuation models (discounted cash flow model, EVA model, and Ohlson model) and examined which performance measure based on the valuation models (cash flow, EVA, and residual income) can contribute to profit maximization of the shareholders. I critically compared the usefulness of cash flow information to accounting earnings and showed that the former comes with limited usefulness. As a consequence, I demonstrated that an earnings-based performance measure is more suitable for share-holder-oriented management.</p><p> There are two major implications of this survey. The first is that a discounted cash flow model is less practical than accounting-based valuation models, and cash flow is less useful than earnings-based numbers for performance measurement. The second is that although residual income is the performance measure that is the most directly associated with maximizing a shareholders' wealth, EVA can be also useful depending on the cost and benefits of implementing it.</p>

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