Modern performance indicators have little impact on stock returns, traditional indicators shine
The study looked at how different methods can be used to measure how well companies are doing on the New York Stock Exchange. They used two types of indicators, modern ones like Economic Value Added (EVA) and traditional ones like Return on Assets (ROA). They found that traditional indicators like ROA, ROE, EPS, and DPS have a positive impact on stock returns, while EVA doesn't have much of an effect. Overall, both modern and traditional indicators can help predict how well a company's stock will do.