Zeitschrift für Aktien- und Devisenhandel

Zeitschrift für Aktien- und Devisenhandel
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ISSN: 2168-9458


Analysis of the Determinants of Shareholders Value Creation: A Study of Infosys

Abhaykumar Gasti*

The financial efficiency and effectiveness of a company can be examined by applying several traditional financial tools like Return On investment (ROI), Return On Invested Capital (ROIC), Return On Total Assets (ROTA), Earning Per Share (EPS), etc. These measures lack power to exhibit the extent of the value created from view of point of ultimate owners (Shareholders) of the company. Shareholder value creation has gained momentum as the sole measure of wealth added to the shareholders funds after meeting the return expected by the shareholders for the sacrifice of their funds. The study deals with an analysis of the determinants of shareholders value creation on the basis of the operating and financial data collected from the annual reports of the infosys for the study period from 2008-2009 to 2017-18.