Complete Reference on EVA in Indian Corporates

ISBN-13: 9783845431635 / Angielski / Miękka / 344 str.

Muthumeenakshi M; Amilan S

Opis

Today's hottest financial idea and getting hotter" by FORTUNE magazine, Economic Value Added (EVA) is the hot topic of conversation among Financial analysts and Economist. EVA, a registered trademark of Stern Stewart & Co. is an estimate of a firm's economic profit- being the value created in excess of the minimum required rate of return of the company s investors. Having provided the meaning of the economic profit, it can be understood that a company creates shareholders value only if generates returns in excess of its cost of capital. The excess of returns over cost of capital is simply termed as EVA. Here the cost of capital, includes both debt and equity cost. In contrast, the accounting measures allow debt cost only. This creates a critical issue to select a measure which reflects the performance of the company as well as the market performance. Hence in this book, the focus is on EVA to study its ability in reflecting the corporate performance in the light of maximizing the shareholders wealth. Besides this, the usefulness of EVA in the investment decision making for the investors is also studied.

O autorze

I received M.com degree in Alagappa University, M.Phil in Madurai Kamaraj University. I have awarded Doctorate through Alagappa University. I completed PG Diploma in Management and MBA through IGNOU. Now I am in Lady Doak College,Madurai as Assistant Professor in the Department of Commerce. I published two Articles in EVA and one in M&A of Banking.