The Relationship between the Market Value Added of SMEs listed on AIM Italia and internal measures of value creation: The role of corporate strategic planning

Objectives - In saying that measurement of financial performance plays an important role in the capital allocation choices, the aim of this study is to test the relationships between Market Value Added (MVA), stockholders value measures and presence of formal strategic plan. Methodology - The study is among descriptive and correlational researches and using panel data methodology on sample of SMEs listed in AIM Italia. The time under study was from 2010 to 2015. In addition, the hypotheses of the research have been tested using Rahavard Novin software for data collection and SPSS 20.0 for data analysis. Findings - The results indicate that Refined Economic Value Added (REVA) has more correlation with Market Value Added (MVA) than Economic Value Added (EVA); in addition, the results obtained using panel data methodology shows that the use of strategic plans influences the relationship between value performance measures and MVA. Research limits - Data used for this study need to be subjected to more statistical tests in order to establish a more robust validity and reliability. It is necessary to acquire further strengthened data and assume a variety of conditional situations. It is expected that subsequent studies can use larger samples and diversified by sector, a broader geographic base and a multi-faceted analyses. Practical implications - This work offer necessary evidences in order to help capital market participants to make rational decision in investment process. Originality of the study - The originality of this study is the correlation between MVA, financial measures and use of strategic planning for value management.