The Trends in Firm Value Creation: An Examination of Select Indian Firms
31 Pages Posted: 1 Sep 2012 Last revised: 17 Apr 2023
Date Written: August 31, 2020
Abstract
Maximizing the total value of the firm — that is, the sum of the market values of the equity, debt and any other contingent claims outstanding on the firm — is fast gaining popularity in India. Value maximization, as an objective function that will guide managers in making the optimal tradeoffs
Using a sample of 1000 companies, classified into sixteen industries, two industry sectors, seven BSE listing groups and six geographical regions, this paper investigates the value creation patterns of Indian firms and to ascertain whether there are significant differences across industries, industry sectors, BSE listing groups and geographical regions
Keywords: Value Creation, Corporate performance measures
JEL Classification: G00, J33, L21, M40, M52
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