Abstract

In this study, economic value added and created shareholder value were calculated based on accounting figures and their difference was determined. Then, the reason of this difference has been analyzed using earnings management and corporate governance structure. Earnings management was calculated utilizing discretionary accrual accounting based on adjusted Jones model between 2004 and 2010; executive director ratio, non-executive director ratio, and ownership concentration in companies were examined concerning corporate governance variables. In this regard, regression statistical methods and T, F, and Pearson tests were used for assumptions examination. Selected sample was from accepted companies in Tehran stock exchange. The results showed that difference between economic value added and created shareholder value is meaningful. Examining reasons of the difference indicated that the difference has a meaningful relation with index of discretionary accrual accounting in companies. In addition, relation of executive director ratio and ownership concentration in companies with calculated difference was approved (it was positive) but relation of non-executive director ratio with the difference was not approved (it was negative). Moreover, effect of financial leverage, company size, and their type of ownership on the difference was approved.

Key words: Corporate governance, created shareholder value, earnings management, economic value added.