An analysis of shareholders value of the select private sector non-banking finance companies in India

Corporate management has been placed under a growing pressure to implement financial strategies that create value for its shareholders, although maximizing shareholders wealth has become a paramount corporate mission. Non-Banking Finance Companies also to generate value for shareholders and value based management systems have been developed. In this study an attempt has been made to identify the shareholder value of the select private sector Non-Banking Finance Companies in India for the period of 2000-2014through the technique of EVA. Economic Value Added (EVA) is the financial performance measure that comes closer than any other to capture the true economic profit of an enterprise. From the analysis, it is observed that all the select Non-Banking Finance Companies have achieved a positive and significant growth in shareholder value addition (EVA) and Net Operating Profit after Tax (NOPAT) is the most significant factor in determining shareholder value of the sample firms.