Valuation of Companies in Mexico from 2006 to 2017 through capitalization value and economic value added
Article Sidebar
Main Article Content
Abstract
Purpose: To explain the relationship between the value of Mexican Stock Exchange companies (BMV) measured through the capitalization value and economic value added (EVA) methods, at a sector level, from 2006 to 2017.
Methodological design: The EVA and capitalization value methods were applied in the period from 2006 to 2017, taking the companies listed on the Mexican Stock Exchange as the sample; a Pearson relationship correlation was then measured between both indicators.
Results: No relationship was found between the company’s value measured through capitalization value and EVA during the studied time span. Capitalization value tends to rise while EVA shows a light downward trend.
Research limitations: The number of companies in each sector is small with some sectors comprised by one company only.
Findings: Since capitalization value shows a rising tendency while EVA’s decreases, it is affirmed that sample companies did not create value but rather they did increase their capitalization value, which suggest a boost to commercial operations of companies’ shares with no link to value creation.
Downloads
Article Details
Citas en Dimensions Service
Entreciencias: Diálogos en la Sociedad del Conocimiento recognizes and respects the moral rights of authors as well as ownership rights transferred in non-exclusivity to the journal for its open access dissemination and its preservation. Hence, authors who publish in this journal accept the following conditions:
- Entreciencias: Diálogos en la Sociedad del Conocimiento from Universidad Nacional Autónoma de México is distributed under a Licencia Creative Commons Atribución-NoComercial-SinDerivar 4.0 Internacional, which allows the information and metadata to be used without commercial ends as long as proper citation is utilized.
Authors will have the right to non-exclusively distribute the contribution made to Entreciencias: Diálogos en la Sociedad del Conocimiento. That is, they will be able to include it in an institutional repository or disseminate it in other digital or printed media as long as it is explicitly stated that it was first published in Entreciencias: Diálogos en la Sociedad del Conocimiento. The following information must additionally be included: author, year, volume, page numbers, electronic paging, and DOI.
Authors, whose publications have been accepted, will have to send the Letter of Copyright Transfer in the corresponding format, filled out and signed by the author or authors.