Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools
We compared the relationship between traditional financial measures and economic value based financial measures with created shareholder's wealth. A value based model is created to explore the degree of value creation in the organization. The paper contributes to the existing literature on perf...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Malaysia Pahang
2015
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/13858/1/Empirical%20Analysis%20On%20Shareholder%E2%80%99s%20Wealth%20Creation%20Through%20Value%20Based%20Measurement%20Tools.pdf |
| _version_ | 1796991457432698880 |
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| author | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_facet | Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan |
| author_sort | Panigrahi, Shrikant |
| collection | UMP |
| description | We compared the relationship between traditional financial measures and economic value based financial measures with created shareholder's wealth. A value based model is created to explore the degree of value creation in the organization. The paper contributes to the existing literature on performance measurement as it had used cross
sectional pooled time series data for getting greater empirical certainty on the implication of EVA. Even though economic value added was significant support it has
not been reported by the companies and has not been used by investors for the investment decisions. Hence managers are suggested to pay more focus on the importance of EVA and its benefits for the shareholder’s wealth creation. It was also found that earnings per share (EPS) as a traditional measure is still enables to measure shareholder's value creation. Thus it is important to perform a comparative investigation between EVA and EPS towards shareholder's value creation. The importance of EVA as an economic measure over traditional accounting measures that would result with an effective decision making and compensation process for managers as well as shareholders. |
| first_indexed | 2024-03-06T12:05:45Z |
| format | Article |
| id | UMPir13858 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:05:45Z |
| publishDate | 2015 |
| publisher | Penerbit Universiti Malaysia Pahang |
| record_format | dspace |
| spelling | UMPir138582018-08-29T04:53:01Z http://umpir.ump.edu.my/id/eprint/13858/ Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan HD28 Management. Industrial Management We compared the relationship between traditional financial measures and economic value based financial measures with created shareholder's wealth. A value based model is created to explore the degree of value creation in the organization. The paper contributes to the existing literature on performance measurement as it had used cross sectional pooled time series data for getting greater empirical certainty on the implication of EVA. Even though economic value added was significant support it has not been reported by the companies and has not been used by investors for the investment decisions. Hence managers are suggested to pay more focus on the importance of EVA and its benefits for the shareholder’s wealth creation. It was also found that earnings per share (EPS) as a traditional measure is still enables to measure shareholder's value creation. Thus it is important to perform a comparative investigation between EVA and EPS towards shareholder's value creation. The importance of EVA as an economic measure over traditional accounting measures that would result with an effective decision making and compensation process for managers as well as shareholders. Penerbit Universiti Malaysia Pahang 2015 Article PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/13858/1/Empirical%20Analysis%20On%20Shareholder%E2%80%99s%20Wealth%20Creation%20Through%20Value%20Based%20Measurement%20Tools.pdf Panigrahi, Shrikant and Yuserrie, Zainuddin and Noor Azlinna, Azizan (2015) Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools. International Journal of Industrial Management (IJIM), 1. pp. 1-11. ISSN 2289-9286 (Print); 0127-564x (Online). (Published) http://ijim.ump.edu.my/images/pdf/9.pdf |
| spellingShingle | HD28 Management. Industrial Management Panigrahi, Shrikant Yuserrie, Zainuddin Noor Azlinna, Azizan Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title | Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title_full | Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title_fullStr | Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title_full_unstemmed | Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title_short | Empirical Analysis On Shareholder’s Wealth Creation Through Value Based Measurement Tools |
| title_sort | empirical analysis on shareholder s wealth creation through value based measurement tools |
| topic | HD28 Management. Industrial Management |
| url | http://umpir.ump.edu.my/id/eprint/13858/1/Empirical%20Analysis%20On%20Shareholder%E2%80%99s%20Wealth%20Creation%20Through%20Value%20Based%20Measurement%20Tools.pdf |
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