26Jul 2017

ECONOMIC VALUE ADDED: A FINANCIAL TOOL FOR MEASURING CORPORATE PERFORMANCE WITH REFERENCE TO INDIAN AUTOMOBILE SECTOR.

  • Lecturer in Commerce, Sadhu Goureswar College, Kanikapada, Jajpur. Odisha, India.
  • Lecturer in Costing, Government Engineering College, Keonjhar, Odisha.
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It is universally accepted that the goal of financial management is to maximize the shareholder?s value. In recent years, Economic Value Added (EVA) framework is gradually replacing the traditional measures of financial performance on account of its robustness and its immunity from creative accounting. Following this global trend, several companies in India are focusing on shareholders? value creation. The main objectives of this study were: to examine whether the sample companies has been able to generate value for its shareholders; to analyze the effectiveness of EVA over the conventional measures of corporate performance, and to indicate whether the significant differences exists between the values of EVA and other profitability measures of the sampled companies. Moreover, it also seeks to examine the value-creation strategies of selected Indian Automobile companies by analysing whether EVA better represents the market-value of companies in comparison to conventional performance measures. In this regards, EVA and the conventional measures of corporate performance are analysed. Moreover, various statistical tools like ANOVA, trend analysis and regression analysis are used for analysing the data.

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[Ganesh Prasad Panda and Santosh Kumar Panda. (2017); ECONOMIC VALUE ADDED: A FINANCIAL TOOL FOR MEASURING CORPORATE PERFORMANCE WITH REFERENCE TO INDIAN AUTOMOBILE SECTOR. Int. J. of Adv. Res. 5 (Jul). 1897-1902] (ISSN 2320-5407). www.journalijar.com

GANESH PRASAD PANDA
Lecturer in Commerce, Sadhu Goureswar College, Kanikapada, Jajpur. Odisha, India 755011

DOI:

Article DOI: 10.21474/IJAR01/4918      
DOI URL: http://dx.doi.org/10.21474/IJAR01/4918

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