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B. Mirttika, G. Santhiyavalli


Wealth maximization has become an important paradigm among the Indian corporate. It is necessary for the companies to perform effectively and indulge in enhancing the return expected by the investors. The traditional measures such as ROA, ROE, RONW, EPS etc., are not capable in exploring the true profitability of the company. In this regard, the value based measures have attracted the attention of the investors due to their ability to measure the shareholders wealth. EVA is one such internal performance measure that helps in evaluating the company’s performance. The study aims to investigate the relationship EVA and EPS with respect to share price. In order to accomplish the objective, a sample of three listed companies from Indian Pharmaceutical industry was selected based on market capitalization. Secondary data was collected for a period of ten years from 2008-09 to 2017-18and was analyzed with the help of statistical tools such as correlation and regression. All the select companies have created wealth in the form of increase in the EVA. EPS have a significant positive impact on the share price of select pharmaceutical companies.


Shareholder value, Economic value added, Share price, Earnings per share.

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