Analysis of EVA Accounting vs Traditional Performance Measures in Indian Pharmaceutical Industry

Dr. Virender S. Poonia; Ms Vandana

Volume : VII, Issue : IX, September - 2018

Analysis of EVA Accounting vs Traditional Performance Measures in Indian Pharmaceutical Industry

Dr. Virender S. Poonia, Ms Vandana

Abstract :

The begging of EVA as competing performance matrix may unquestionably be considered as one of the most earth-shattering financial management innovations of the past decade.The evidence of the majority of the empirical studies regarding EVA suggests that there is a positive relationship between EVA and shareholder value creation, measured by MVA. An attempt has been made in this part to find out the explaining power of EVA versus traditional performance measures. The researcher tries to understand whether EVA is the best interpreter of MVA in comparison with other long-established but traditional financial measures.Here an attempt has been made to ing out the basic analysis of selected financial measures of selected companies for a period of ten years from 2008 to 2017. These measures include MVA, EPS, NOPAT, ROA and ROCE. They are often used to appraise the financial performance of a corporate. Moreover, these measures have been placed under assessment to evaluate the financial status, ranking, statistical trends. Descriptive statistical values such as mean, maximum, minimum, standard deviation and variance for each of the performance variables have been also elaborated in this part. SPSS package has been utilized for this purpose.