Impact of Value-Based and Accounting Metrics on Shareholder Value : Indian Automobile Companies
Authors
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Keerthana S.
Research Scholar (Corresponding Author), Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Bharathi Park Road, Near Forest College Campus, Saibaba Colony, Coimbatore - 641 043, Tamil Nadu
https://orcid.org/0009-0005-9834-3881
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P. Deivanai
Assistant Professor (SG), Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Bharathi Park Road, Near Forest College Campus, Saibaba Colony, Coimbatore - 641 043, Tamil Nadu
https://orcid.org/0000-0002-2984-4616
DOI:
https://doi.org/10.17010/ijf/2026/v20i3/175228Keywords:
firm objectives, market value added, economic value added, value-based metrics, shareholder value, firm performance.JEL Classification Codes :G31, L210, L250, L290, M200
Publication Chronology: Paper Submission Date : September 30, 2025 ; Paper sent back for Revision : March 5, 2026 ; Paper Acceptance Date : March 10, 2026 ; Paper Published Online : March 15, 2026.
Abstract
Purpose : The present paper investigated the growth of shareholder value and the factors influencing shareholder value in Indian automobile companies, focusing on perceptions of value-based and accounting metrics. The automobile sector was an economic engine in India. Profit and shareholder wealth were concentrated along a straight line. The current study focused on providing empirical evidence on the influencing factors of shareholder value.
Methodology : A total of eight independent variables (return on assets, return on equity, net profit, current ratio, share price, economic value added (EVA), refined EVA (REVA), and market value added) and shareholder value as the dependent variable were amalgamated in the study. The sources used in the research were quantitative data collected from the companies’ annual reports. The historical data were assessed from 2010 – 2025. EViews software was used for the analysis.
Findings : The findings showed that SP, EVA, market value added (MVA), and refined economic value added (REVA) had a significant impact on the shareholder value of the assessed companies. The study concluded that calculating and examining value-based metrics was important in understanding and enhancing the trend in shareholder value.
Practical Implications : The results recommended that financial regulators can encourage companies to adopt value-based metrics, which are essential for improving shareholder value and ensuring long-term corporate sustainability.
Originality/Value : This research provided a novel viewpoint on shareholder value with value-based metrics. Unlike prior research on shareholder return, the current studies incorporated both accounting and value-based metrics.
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