Shareholder Value Creation In India»s Top Four Tyre Manufacturing Companies

Abstract

The primary responsibility for a corporate management is to increase value of its shareholders who are considered to be the owners of the company. Being owners they have the right to know how their company achieves this so that they are assured that their investments are safe and are utilized in a proper manner. The present study is based on the secondary data and covers a period of 10 years from 1999-2000 to 2008-2009. Four companies of the tyre industry have been selected for analysis . Thses four companies are the major players in the tyre industry and account for 63 per cent of the organized tyre market. The highest value creator was MRF ,the number one player in the industry. Out of the four companies, two companies i.e MRF and J.K.Tyres reported positive EVA for all years. MRF Tyres has been creating the highest value for six years out of the total ten years and Appolo tyres has been creating the highest value for the remaining four years of the study.

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