Volume : II, Issue : IX, September - 2013

Determinants of Wealth Maximisation in FMCG Sector

Dr Mrs. Padmasani, Mrs. R. Vijayalakshmi

Abstract :

Shareholders` wealth maximization has become the predominant goal of corporations in India. Most CEOs today understand that, the need to create shareholder wealth is paramount and the world`s most competitive management teams are responding to the pressure to create wealth by emacing new metrics and new models for managing their companies. In this regard, this paper tries to identify two facts– whether the sample companies in FMCG sector have created wealth to their shareholders and whether the value based or traditional based performance measures influence in shareholders wealth maximization. For this purpose, a sample of six companies in FMCG sector, which is the fourth largest sector in India with a total market size of Rs.167100 crores in the year 2011–12 is considered. This study concludes that as compared to traditional measures, EVA is the best internal measure and also the best determinant in the creation of shareholders wealth in FMCG sector.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr (Mrs.) Padmasani, Mrs. R. Vijayalakshmi Determinants of Wealth Maximisation in FMCG Sector International Journal of Scientific Research, Vol : 2, Issue : 9 September 2013

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