“a Study on Investors Perception Towards Eva as Reporting Practice in Indian Banking Sector “
“A Study on Investors Perception towards EVA as Reporting Practice in Indian Banking Sector “
R.SATISH Dr.S.S.RAU
Associate Professor Registrar
SRR Engineering College Sathyabama University Chennai Chennai-119
ABSTRACT
Economic Value Added [EVA] is a value-based framework that provides a unique insight into value creation and unites the finance theory with the competitive strategy framework. EVA has become a popular and powerful tool for managers to measure performance and for guiding investment decisions. EVA can be computed for the organisation as a whole or according to types of products, lines of business, regions, and other factors. Traditional parameters of measurements like Return on Investment [ROI], Earnings Per Share [EPS], etc., have failed to measure what is most important today “Value Creation “. For Several years shareholders value was measured in terms of size and not quality. Of late, there has been a steady rise in the number of Indian Companies, which talk about the value they have created for their shareholders but a wide gap created in the banking system for EVA implementation. In this paper, an attempt has been made to know the investors perception towards EVA and to clarify the concept of EVA especially from the view point of reporting practices in the Indian Banking sector using statistical tools and appropriate suggestions were drawn.
INTRODUCTION
Investors are currently demanding shareholders value more strongly than ever world-wide. The present study is an attempt to understand EVA concept in its present status and to examine reporting practices in the Indian Corporate sector along with a view of the investors towards the concept. The study also aims at knowing
R.SATISH Dr.S.S.RAU
Associate Professor Registrar
SRR Engineering College Sathyabama University Chennai Chennai-119
ABSTRACT
Economic Value Added [EVA] is a value-based framework that provides a unique insight into value creation and unites the finance theory with the competitive strategy framework. EVA has become a popular and powerful tool for managers to measure performance and for guiding investment decisions. EVA can be computed for the organisation as a whole or according to types of products, lines of business, regions, and other factors. Traditional parameters of measurements like Return on Investment [ROI], Earnings Per Share [EPS], etc., have failed to measure what is most important today “Value Creation “. For Several years shareholders value was measured in terms of size and not quality. Of late, there has been a steady rise in the number of Indian Companies, which talk about the value they have created for their shareholders but a wide gap created in the banking system for EVA implementation. In this paper, an attempt has been made to know the investors perception towards EVA and to clarify the concept of EVA especially from the view point of reporting practices in the Indian Banking sector using statistical tools and appropriate suggestions were drawn.
INTRODUCTION
Investors are currently demanding shareholders value more strongly than ever world-wide. The present study is an attempt to understand EVA concept in its present status and to examine reporting practices in the Indian Corporate sector along with a view of the investors towards the concept. The study also aims at knowing
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