Abstract:

The aim of this study is to analyze the relationship between performance metric Economic Value Added (EVA) and wealth metric Market Value Added (MVA), Invested Capital and EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) of the telecommunication companies listed in Dubai Financial Market for the past six years from 2008 till 2013 as the United Arab Emirates (UAE) telecommunication sector is among the strongest and advanced in the Arab world The correlation between EVA and MVA stands at 0.8. Companies worldwide use the financial metric Economic Value Added (EVA) to assess their financial performance which is an alternative performance measurement technique to overcome the limitations of the traditional measures. Every performance metric has a corresponding wealth metric.