ECONOMIC VALUE ADDED PERFORMANCE OF BSE

This research paper studies BSE-SENSEX companies profile to demonstrate a direct correlation between the investment in stakeholder relationships and corporate performance. Economic Value Added (EVA) is now being considered as an important management tool across the corporate world for measuring and rewarding performance inside the companies. Most of the companies measure performance with accounting profits which are often seriously biased measures of true profitability. EVA is an unbiased measure of true profitability. Unlike accounting profits, EVA indicates the value to what extent created by management or agent for shareholders. The paper aims at analyzing BSE-SENSEX Companies performance through EVA. For this purpose, EVA has been calculated taking certain assumptions as to the cost of equity and operational profit adjustments. However, the study concludes that among the 30 companies ONGC and Reliance Industries EVA were topped. Further, the three companies EVA were negative during the period of the study in the BSE-SENSEX Companies. So the companies should improve their profit which is enough to face their cost of capital.