OPTIMUM CAPITAL STRUCTURE STRATEGIES AND USAGE OF ECONOMIC VALUE ADDED FOR SHARE HOLDERS VALUE CREATION WITH SPECIAL REFERENCE TO INFOSYS

Dr. M. AMARAVATHI; ANAND SHANKAR RAJA. M

Volume : IV, Issue : XII, December - 2014

OPTIMUM CAPITAL STRUCTURE STRATEGIES AND USAGE OF ECONOMIC VALUE ADDED FOR SHARE HOLDERS VALUE CREATION WITH SPECIAL REFERENCE TO INFOSYS

Dr. M. Amaravathi, Anand Shankar Raja. M

Abstract :

The concept of capital structure is extremely important because it can influence not only the return a company earns for its shareholders, but whether or not a firm survives in a recession. Maximizing shareholder’s wealth has become the new corporate paradigm. The thrust area for today’s management is to find means to create value for the owners. Many traditional models are present which may not measure the actual value created for its share holders. Thus, it is necessary for the usage of modern tool EVA to determine whether the wealth had been made use of or been destroyed. The firms can even plan optimum capital structure to increase their value.