Abstract
Measurement of shareholder value creation has been the issue of discussion all around the world. This study aims at presenting an extensive picture of how shareholder value is created as a background to measuring business performance. To help one understand the concept better, the researcher uses the example of Cadila Healthcare Limited, and analyses its shareholder value creation and business performance for a period of five years from 2002-3 to 2006-7. The relationship between increase of equity market value and shareholder value added is also observed in this study. To know whether the firm could maintain its efficiency and effectiveness in future, satisfy the interest of shareholders, and utilize its resources in proper way or not, performance of business is measured through economic value added and some other financial indicators.
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