Relative and Incremental Value Relevance of Traditional and Real Performance Measures: Evidence from Palestine Manufacturing Listed Companies

Purpose: This study seeks to test both incremental and relative value relevance of the Economic Value-Added (EVA) as a real performance indicator (EPS) traditional in context Palestine Exchange (PEX) listed manufacturing companies. Theoretical framework: Previous research provided mixed evidence about superiority EVA over measures predicting market value; some studies supported (Zimmerman, 1997; Shishanya et al., 2020), while others denied that (Biddle Agnatia & Amalia, 2018). Testing compared EPS was rarely conducted Palestine. Design/methodology/approach: Seventy company-year observations were gathered from 10 13 PEX-listed companies seven years (2015-2021); employed regression correlation analysis. Findings: The found significant relationship between stock returns concluding an insignificant returns. also beats EVA. However, findings showed adds information content EPS’s interpretation Research, Practical Social implications: outcomes help direct investors analysts, assessing company’s returns; it helps policymakers regulators directing updating reporting requirements. Originality/value: literature on indices Further is recommended other sectors whole market.