IDEAS home Printed from https://ideas.repec.org/a/jfr/afr111/v6y2017i1p148.html
   My bibliography  Save this article

Shareholder Value Creation: An Empirical Analysis of Indian Banking Sector

Author

Listed:
  • Chitra Gunshekhar Gounder
  • M. Venkateshwarlu

Abstract

This study investigates the importance of economic value added for the shareholders’ value maximization. Economic value added (EVA) is a value based performance measurement tool that helps to settle down the management decision regarding creation of  shareholders value. Very few literatures are found regarding creation of shareholder values in banks. Sample of 40 Indian commercial listed Banks and panel data are used for the period of 2001 to 2015, the empirical findings for Public limited banks and overall Indian banks revealed that there is a positive and significant relationship between shareholder’s value maximization and EVA but in case of Private limited banks, DPS was found to have significant relationship with shareholder value. The Higher the value of  EVA, higher  shareholders value .The finding shows significant support for EVA and DPS, but it was found that EVA is not efficiently used for Analysis and decision making regarding creation of value. Thus it is suggested to focus on criteria of EVA for analyzing shareholder’s value of banks.Â

Suggested Citation

  • Chitra Gunshekhar Gounder & M. Venkateshwarlu, 2017. "Shareholder Value Creation: An Empirical Analysis of Indian Banking Sector," Accounting and Finance Research, Sciedu Press, vol. 6(1), pages 148-148, February.
    • Handle: RePEc:jfr:afr111:v:6:y:2017:i:1:p:148
    as

    Download full text from publisher

    File URL: https://www.sciedupress.com/journal/index.php/afr/article/download/11069/6781
    Download Restriction: no
    File URL: https://www.sciedupress.com/journal/index.php/afr/article/view/11069
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pablo Fernandez, 2012. "Internet valuations: The case of Terra-Lycos," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-22.
    2. Azarnoush Ansari & Arash Riasi, 2016. "Customer Clustering Using a Combination of Fuzzy C-Means and Genetic Algorithms," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(7), pages 1-59, June.
    3. Robert Millward, 1982. "The Comparative Performance of Public and Private Ownership," Palgrave Macmillan Books,, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claessens,Constantijn A.*Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
    2. Shengkun Xie & Chong Gan, 2023. "Estimating Territory Risk Relativity Using Generalized Linear Mixed Models and Fuzzy C -Means Clustering," Risks, MDPI, vol. 11(6), pages 1-20, May.
    3. Mary M. Shirley, 1997. "POLICY ARENA: The Economics and Politics of Government Ownership," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(6), pages 849-864.
    4. Oghuvwu, M. E. & Omoye, A.S, 2016. "Mergers, Acquisitions and Corporate Performance: The Balanced Scorecard Approach," Accounting and Finance Research, Sciedu Press, vol. 5(4), pages 1-63, November.
    5. Johan Willner, 2010. "Public Options and Altruistic Firms - Antitrust Targets or Tools? The Welfare Impact of a Mixed Oligopoly With Managerial firms," Discussion Papers 59, Aboa Centre for Economics.
    6. Marc Deloof & Wouter De Maeseneire & Koen Inghelbrecht, 2009. "How Do Investment Banks Value Initial Public Offerings (IPOs)?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(1‐2), pages 130-160, January.
    7. Clarke, George R.G. & Cull, Robert & Shirley, Mary M., 2005. "Bank privatization in developing countries: A summary of lessons and findings," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 1905-1930, August.
    8. Johan Willner, 2013. "The welfare impact of a managerial oligopoly with an altruistic firm," Journal of Economics, Springer, vol. 109(2), pages 97-115, June.
    9. Johan Willner, 2006. "A Mixed Oligopoly Where Private Firms Survive Welfare Maximisation," Journal of Industry, Competition and Trade, Springer, vol. 6(3), pages 235-251, December.
    10. Asaftei, Gabriel & Kumbhakar, Subal C. & Mantescu, Dorin, 2008. "Ownership, business environment and productivity change," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 498-509, September.
    11. Willner, Johan, 2001. "Ownership, efficiency, and political interference," European Journal of Political Economy, Elsevier, vol. 17(4), pages 723-748, November.
    12. Hsu, Su-Ying & Lo, Chu-Ping & Wu, Shih-Jye, 2014. "The nexus of market concentration and privatization policy in mixed oligopoly," Economic Modelling, Elsevier, vol. 38(C), pages 196-203.
    13. Sowby, Robert B., 2018. "Comparison of operational energy requirements in publicly and privately owned U.S. water utilities," Utilities Policy, Elsevier, vol. 54(C), pages 92-95.
    14. Johan Willner & Sonja Gronblom, 2016. "The organisation of services of general interest in Finland," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 89-116.
    15. AfDB AfDB, 1997. "Working Paper 35 - Privatization of Public Enterprises in Zambia: An Evaluation of the Policies, Procedures and Experiences," Working Paper Series 2173, African Development Bank.
    16. Kevin Cullinane & Dong-Wook Song, 2003. "A stochastic frontier model of the productive efficiency of Korean container terminals," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 251-267.
    17. Mühlenkamp, Holger, 2013. "From state to market revisited: more empirical evidence on the efficiency of public (and privately-owned) enterprises," MPRA Paper 47570, University Library of Munich, Germany.
    18. Siegmund, Uwe, 1997. "Warum Privatisierung? Eine Dogmengeschichte der Privatisierungstheorien," Kiel Working Papers 785, Kiel Institute for the World Economy (IfW Kiel).
    19. Willner, Johan, 1999. "Policy objectives and performance in a mixed market with bargaining," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 137-145, January.
    20. Kamath Shyam J., 1994. "Privatization: A Market Prospect Perspective," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 5(1), pages 1-52, March.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:afr111:v:6:y:2017:i:1:p:148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sciedu Press (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.