Measuring and Creating Shareholders’ Value With Reference to S&P BSESENSEX : An Empirical Study

The main purpose of the study is to investigate the Bombay Stock Exchange (BSE-30)companies financial performance and measuring financial performances by using of emerging techniqueslikeMarket value added(MVA),Total shareholders return(TSR), Book value to Market value of equity (Tobin’s Q)and Earning pershare(EPS). The studyalso explores which metric is significantly associatedmore tocreate shareholdersvalue,for this study have been taken TSR, Tobin’s Qand EPSasindependentvariables and MVA is the dependent variable inorder to examine the greater associationof selected independent variables. In this study foundthat MVA and Tobin’s Qof all companiesshows positive results except TATA STEELCompanywhich shows negative performance and the study rank 1stto Tata Consultancy Services based on MVA. Furthermore, Tobin’s Qvalue metric significantly associated withMarket Value Added withestimated co-efficient 66701.10by applying stepwise regression model.Therefore, Present Gauging the performance of TSR, Tobin’s Q, EPS and its interaction with MVA shed a necessary light for the financial decision makers. The conspicuous proof of key held that Tobin’s Q is the most powerful metric for creating value to the shareholders and the study alarms the financial literature and also opens the gate for innovative further research