Discriminating the Indian Banks as regards their Extent of Shareholder Value Creation

Hemal Pandya

Abstract


ABSTRACT

The creation of shareholder value is the increase in equity market value, the shareholder value-added, the shareholder return and the required return to equity. That is, when it surpasses shareholders’ ‘expectations’. The present study aims analysing the extent of shareholder value creation in Indian banks using various Accounting and Value Based measures of shareholder value creation and classifying these banks as either value creators or value destroyers for their shareholders.The study is based on secondary data obtained from the various data sources including Ace-Knowledge and Research Portal. A sample of 35 has been taken from Indian Banking Sector during the period spanning 2004-05 to 2013-14. ROCE and SHR are the most important determinants in discriminating between the two categories of banks.

 

Key Words: Shareholder Value Creation, Value Creators, Value Destroyers, Indian Banks, Discriminant Analysis


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ISSN : 2251-1555