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    Economic Value Added as a Performance Measurement Tool: A Study on Selected Banks in India
    (9th International Conference on Business and Information (ICBI-2018), Department of Management Studies and Toc H Institute of Science and Technology, India, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Antony, A.; Subramanin, V.
    Banks has significant role in the economy as it constitutes an important aspects of Indian Financial System. But in recent year its profitability was adversely affected because of stressed assets. The assets stress has hampered credit growth of the economy. Five banks were selected to evaluate its performance both in terms of financial performance measures as well as value based measures. The main objective of the study was to evaluate the financial efficiency of the banks and also the contribution of the banks in value creation towards its shareholders. The period of the study was 2014-2018. The EVA and MVA were the two value based measures and the dependent variable of the study. The independent variables are Net Profit, Operating Profit, ROA, ROCE, PAT, CAR, EPS and EVA. From the two regression models, the stronger one was the Economic value Added as it was found that 67% of the variation of the dependent variable was due to the independent variables. It is observed that the MVA of all the four private sector banks has steadily improved over the years. The same cannot be said of SBI where the MVA has eroded significantly. The study help to identify whether the banks are properly utilizing the capital invested and creating value for its shareholders. However, study shows that Operating Profit and ROCE is highly correlated to the value performance measures of the banks
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    Accounting Based Performance Measures and Shareholder Value Creation: Evidence from Listed Companies in Colombo Stock Exchange
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Iroshani, M.B.M.; Rajapakse, R.M.A.D.P.
    Rapid growth of investments in the market has led the “Shareholder Value Creation” being one of the most important and popular concept all over the world. Since the companies were highly attracted for creating shareholder value, the concept has become a critical component. Traditional Accounting Based Performance Measures were critiqued for reporting a low level correlation with shareholder value creation. Thus this study examines the relationship between Accounting Based Performance Measures and Shareholder Value Creation for selected Beverage, Food and Tobacco companies listed in Colombo Stock Exchange. Nineteen companies from the sector were selected as the sample for the study. Audited annual reports for 6 years from 2010 to 2015 were analyzed to collect data needed for the study. Market Value Added (MVA) was used as the proxy to Shareholder Value Creation Measures and Return on Equity (ROE), Earnings per Share (EPS) and Return on Assets were used as the Accounting Based Performance Measures. Simple Regression and Multiple Regressions were used to test specified four research objectives. Other than those methods Descriptive Statistics and Correlation analysis have been done. The research findings suggested that there was no strong significant relationship between Accounting Based Performance Measures and Shareholder Value Creation. In conclusion it is recommended to consider contemporary economic measures when making an investment rather than only considering the Accounting Based Performance Measures.