Record Details

Association of Total Shareholder Return with other value based measures of financial performance

Journal of Entrepreneurship, Business and Economics

View Archive Info
 
 
Field Value
 
Title Association of Total Shareholder Return with other value based measures of financial performance
 
Creator Pandya, Bhargav
 
Description Purpose- The purpose of this paper is to examine the relationship between total shareholder return (TSR) and other value based measures like created shareholder value (CSV), market value added (MVA), and economic profit (EP) in Indian banking sector and provide empirical evidences.
Design/methodology/approach- The paper uses a sample of 21 listed Indian banks segregated into 10 public sector banks and 11 private sector banks. The study period ranges from year 200-01 to 2009-10. Pooled ordinary least square regression is used to test the relationship between the variables in question.
Findings- The results reveal that CSV, EP individually explain the variation in TSR of Indian banks. Whereas, MVA as an individual independent variable does not explain variation in TSR of Indian banks. However CSV, MVA and EP jointly explain variation in TSR of Indian banks.
Research limitations/implications- The study was specifically restricted to listed banks in India. It did not consider unlisted banks.
Originality/value- Author concludes that individual value based measure should not be blindly used while measuring the shareholder value creation by a firm. Rather, a mix of these measures should be used to accurately measure the shareholder value creation.
Research paper
Reference to this paper should be made as follows: Pandya, B. (2014). “Association of Total Share-holder Return with other value based measures of financial performance: Evidence from Indian Banking Sector”, Journal of Entrepreneurship, Business and Economics, Vol. 2, No. 2, pp. 26–44.
 
Publisher Scientificia
 
Date 2014-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://scientificia.com/index.php/JEBE/article/view/22
 
Source Journal of Entrepreneurship, Business and Economics; Vol 2 No 2 (2014); 26-44
2345-4695
 
Language eng
 
Relation http://scientificia.com/index.php/JEBE/article/view/22/21
 
Rights Copyright (c) 2014 Journal of Entrepreneurship, Business and Economics