Corporate Valuation by Security Analysts and Evolution of Corporate Performance Measure

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The major object of the research is to investigate how corporate performance measures are affected by measures of security analyst. For this purpose, I took two different steps, first one to test a hypothesis that analyst consensus is more correlated to stock prices than other measures such as reported earnings and Economic Value Added and second one to analyze the influence to corporate performance measures by security analyst's measures.According to the recent empirical studies, stock prices more correlated to residual income than other measures such as EVA and cash flow. But this does not means the superiority of the accounting measures to the others, but it does only mean the accounting measures are more frequently used to evaluate shareholder value. The empirical results should be interpreted that explanatory power of measures depends on frequency of the usage of measures for valuation.Empirical tests are on the process to verify that analyst consensus more correlated to stock prices than other measures. In this work, I had a good expectation from data analysis so far.On the other hand, many interviews with corporate managers are attempted to investigate how internal performance measures are affected by analyst measures. Many cases including Sony Corporation are found to meet the hypothesis that corporate performance measures must be affected by market valuation method such as EVA and EBITDA.