Rohitkumar Pashabhai Barot, Dr. K. B. Rao


Maximizing wealth to shareholders is becoming India's new corporate standard. Wealth of shareholders is calculated in terms of the returns on their investment they earn. Traditionally, the metrics used to assess a business organisation's productivity and profitability have been accounting-based indicators such as ROI, ROE, ROCE, EPS, RONW and financial ratios. Yet now the value-added metrics of a day have emerged as a replacement for the conventional accounting-based acts. The explanation behind this is that a business organisation's financial output is calculated from the interest point of view of the shareholders. Value added reflects the wealth produced over a given time by an enterprise. No company will thrive and expand if its current and future shareholders struggle to produce value. Consequently, value added is a simple metric used to measure an enterprise 's financial efficiency. While keeping this in mind, this study is an attempt to use regression analysis to examine value development in the Indian Pharmaceutical Industry from 2005 to 2014.


Value Creation, Economic Value Added, Market Value Added, ROI

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