Shareholders' Value Creation and Market Capitalization -- A Case Study of Automobile Industry in India

Singh, Pradeep Kumar; Anand, Rakesh
July 2013
Journal of Contemporary Research in Management;Jul-Sep2013, Vol. 8 Issue 3, p1
Academic Journal
Case Study
The objective of the study is to examine shareholders' value creation with the help of market capitalization and to evaluate the contribution of market capitalization in the creation of intangible assets. The main finding of the present study is that in the automobile industry the brands are attracting and retaining customers, resulting in higher market share, higher turnover, higher profitability and maximization of shareholders value. Hero Honda is reporting about EVA and market capitalization to support and justify shareholders value creation and Eicher ltd is also reporting about market capitalization and its impact on shareholders' value creation. Tata motors, Maruti Ltd, Bajaj Auto and Hero Honda are having higher market capitalization, higher net worth and higher intangible assets; it indicates that higher market capitalization creates higher intangibles which ultimately enhance shareholders value in long run.


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