An Analysis of Eva of Selected Pharma Companies in India

Abstract

Shareholder wealth maximization is now widely considered to be the main objective of the management of firms. Countless firms have affirmed their commitment to shareholder wealth and several managers have fallen for not giving adequate importance to it. Of the companies that have been most successful at increasing shareholder wealth as measured by consistent improvements in the return from the stocks, an increasingly common factor is their use of the concept of economic profit as a measure of performance. Economic profit or economic value added (EVA) has become a popular tool for managers to measure performance and for guiding investment decisions. But in the recent years, value based measures like EVA which measures performance in terms of change in value have received a lot of attention. This research paper which will throw light on this concept of value added. This consist the meaning, calculation and analysis of EVA with in selected pharma companies in India. The design of the study is analytical in nature. This is a secondary database research. The relevant information is collected from various sources like internet, books, magazine etc.