CAPITAL EMPLOYED EFFICIENCY AND ECONOMIC VALUED ADDED OF QUOTED COMPANIES

Abstract

This study examine the relationship between Capital Employed Efficiency and Economic Value Added of quoted service firms in Nigeria from 2010-2019. Ex-Post Facto research design was adopted for the study. Data were sourced from annual report and accounts of the sampled quoted service firms, particularly the comprehensive income statement and statement of financial positions of these companies as well as their respective notes to the accounts for the period. The analyses applied the data collected from publications of the Nigerian stock exchange (NSE) and the annual report and accounts of the sample quoted companies. Panel Least Square (PLS) Regression Analysis was employed to test the hypothesis. The study revealed that which states that there is a significant positive relationship between Capital Employed Efficiency and Economic Value Added of quoted service firms in Nigeria at 5% level of significance. On the premise of this study recommended that firms should enhance their capital employed efficiency by ensuring that capital is allocated to the most deserving activities of the corporation as this will have bigger impact on overall firm performance.