A Critical Study of Shareholders’ Wealth Creators and Destroyers in Different Sectors of Indian Manufacturing Industry

In the present paper, an attempt has been made to measure the shareholders’ wealth in terms of Economic Value Added (EVA) for different sectors of Indian manufacturing industry. The top five wealth creator and wealth destroyer sample units have been identified on the basis of five-year average amount of EVA generated by them during 2003-04 to 2007-08. The mean EVA generated by the Indian manufacturing industry during the study period is 929.14 cr. The cement industry showed very high fluctuations in EVA generation during the study period, while the FMCG industry reported consistency in the amount of EVA generation over the five-year span. ANOVA results show that there is no significant difference in the mean values of EVA of different sectors of Indian manufacturing sector. Hence, it can be concluded that the mean value of EVA of the selected sample units represent the mean value of the Indian manufacturing industry.