Companies which earn higher returns than overall cost of capital generate value for their shareholders while those which earn lower return than overall cost of capital are deemed destroyers of shareholders' value. This research paper examines whether the selected companies have been able to create value for their shareholders. To evaluate this, some important traditional performance measures such as Return on Capital Employed (ROCE), Return on Equity (ROE), Earning Per Share (EPS) and Growth in EPS along with a new performance measure called 'Economic Value Added' (EVA) have been used. This research study further throws light on the extensive use of statistical techniques for analyzing the financial performance of the sample companies. The paper also furnishes a summary of the main findings and conclusions in the end.
