Investigating Shareholder's Wealth Creation Through Economic Value based Measurement Tools

Panigrahi, Shrikant and Yuserrie, Zainuddin and Noor Azlinna, Azizan (2014) Investigating Shareholder's Wealth Creation Through Economic Value based Measurement Tools. In: Proceedings of the Australian Academy of Business and Social Science Conference (AABSS 2014) , 25-26 August 2014 , Kuala Lumpur. pp. 1-10.. ISBN 978-0-9925622-0-5

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Profit maximization and increasing shareholder's wealth have been one of the most crucial concepts for the organization. The corporate manager and shareholders rely upon the traditional accounting measures like net income, Earnings per share (EPS), return on Equity (ROE), Return on Net worth (RONW), Returnon Capital Employed (ROCE) to measure the value createdby the firm. But this study utilizies economic measures like Economic Value Added (EVA) and Market Value Added (MVA) combined with the accounting measures to perform a comparative study in order to conclude the most appropriate measures for the creation of shareholder's wealth. The EVA of 28 construction companies from the total 43 construction companies listed in Bursa Malaysia were selected for the study and analyzed during the period of 2003 to 2012. Overall the results for the study found that veryfew of the construction companies were having positive EVA for the creation of Shareholder's wealth.

Item Type: Conference or Workshop Item (Speech)
Uncontrolled Keywords: Shareholder’s wealth; Economic measures; Malaysian construction companies
Subjects: H Social Sciences > HG Finance
Faculty/Division: Faculty of Industrial Management
Depositing User: Mrs. Neng Sury Sulaiman
Date Deposited: 08 Apr 2015 06:52
Last Modified: 08 Jul 2020 05:33
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