Shareholder Value Creation Of Selected Companies In Automobile Industry

Abstract

The primary objectives of any organization are to maximize profit and maximize shareholders wealth. Hence, shareholder value creation has become the main mantra intoned with solemnity at every annual general meeting and in every annual report of the companies. In view of this, in this research, it is intended at analysing the shareholder value creation of selected companies in automobile industry in NSE Nifty Index. The financial variables have intrinsic value, market capitalization, high and low price of shares for 4 companies listed on NSE Nifty for 10 years i.e., from 1st April 2013 to 31st March 2023. From this study results indicated that, all companies could able to create the positive results of value creation. It indicates that the companies could create the good image in the minds of investors. Hence, it could be concluded that the positive results lead to positive manner of the market, whereas negative results lead to negative manner of the market. The hypothesis is based on conducted tests. Therefore, this study will be useful to investors in knowing the status of all selected companies and industries who decide to retain with the company. Thus, this study has social utility to assist the investors for parking of their money.