EVA as an Indicator of Shareholders' Value Creation

The present paper investigates the EVA trend and its relationship with shareholders' value creation in corporate enterprises in India. Shareholders' value maximization is reflected in the market performance. The impact analysis of EVA on market price has been tested for nine years (2004-05 to 2012-13) with the help of linear regression, correlation coefficient and adjusted R-square. Results show that EVA has a positive impact on shareholders' value creation. It is hoped that it will be useful to the investors for decision-making and contribute to the value investing.

MoreLess

Year of publication:	2015
Authors:	Goel, Sandeep
Published in:	Accounting and Finance. - Institute of Accounting and Finance. - 2015, 1, p. 66-70
Publisher:	Institute of Accounting and Finance
Subject:	EVA \| shareholders \| weighted average cost of capital \| market performance \| value creation

More details

Extent:	application/pdf text/html
Type of publication:	Article
Classification:	G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011268365