Managers’ Perceptions on EVA and Profitability in Indian Cement Companies

Anand Ganpatrao Jumle

doi:10.34293/commerce.v14i1.9744

Anand Ganpatrao Jumle Principal, Shree Chanakya Education Soceity’s Indira College of Arts, Commerce and Science Affiliated to Savitribai Phule, Pune University, Pune, India https://orcid.org/0000-0002-6533-3215

DOI: https://doi.org/10.34293/commerce.v14i1.9744

Keywords: Manager’s Perception, EVA, Profitability, Economic Value Added, Value-Based Management, Cement Sector, Financial Performance, Return on Assets

Abstract

Economic Value Added (EVA) has emerged as a key metric for evaluating corporate performance beyond traditional profitability measures. This study investigates managers’ perceptions of EVA and its influence on profitability in Indian cement companies’ profitability. Data collected from 73 respondents across four firms reveal a positive and significant correlation between EVA and profitability indicators, such as EPS and ROTA. The findings emphasise EVA’s role in strategic decision-making and its potential to enhance shareholder values. Future research should explore EVA adoption across different sectors, conduct longitudinal studies to track changes in managerial perception, and examine technological tools that support EVA implementation.