EVA

projects4mp

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INTRODUCTION

Investors are currently demanding Shareholder Value more strongly than ever. In the 1980s, the shareholder activism reached unforeseen levels with the companies in the United States. Thereafter also investors in Europe have increased the pressure on companies to maximize shareholder value. Even in India the so-called Shareholder value – approach has gained grounds.

The financial theory has since long suggested that every company’s ultimate aim is to maximize the wealth of its shareholders. That should be natural since shareholders own the company and as rational investors expect good long-term yield on their investment. In the past, this ultimate aim has however been often partly ignored or at least misunderstood. This can be seen e.g. From measurement systems. Metrics like Return on Investment and Earning per share are used as the most important performance measures and even as a bonus base in large number of companies. Although they do not theoretically correlate with the Shareholder value creation very well. Against this back ground it is no wonder that so-called Value based measures have received lot of attention in the recent years. These new performances metrics seek to measure the periodic performance in terms of change in value. Maximizing value means the same as maximizing long-term yields on shareholders’ investment.
 

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chidam

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your project is nice...but if you Explain with a problems it will be more useful for other to easily to understand
 
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