Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/60814
DC FieldValue
dc.titleModels for measuring and predicting shareholder value: A study of third party software service providers
dc.contributor.authorViswanadham, N.
dc.contributor.authorLuthra, P.
dc.date.accessioned2014-06-17T06:27:39Z
dc.date.available2014-06-17T06:27:39Z
dc.date.issued2005
dc.identifier.citationViswanadham, N.,Luthra, P. (2005). Models for measuring and predicting shareholder value: A study of third party software service providers. Sadhana - Academy Proceedings in Engineering Sciences 30 (2-3) : 475-498. ScholarBank@NUS Repository.
dc.identifier.issn02562499
dc.identifier.urihttp://scholarbank.nus.edu.sg/handle/10635/60814
dc.description.abstractIn this study, we use the strategic profit model (SPM) and the economic value-added (EVA to measure shareholder value). SPM measures the return on net worth (RONW) which is defined as the return on assets (ROA) multiplied by the financial leverage. EVA is defined as the firm's net operating profit after taxes (NOPAT) minus the capital charge. Both, RONW and EVA provide an indication of how much shareholder value a firm creates for its shareholders, year on year. With the increasing focus on creation of shareholder value and core competencies, many companies are outsourcing their information technology (IT) related activities to third party software companies. Indian software companies have become leaders in providing these services. Companies from several other countries are also competing for the top slot. We use the SPM and EVA models to analyse the four listed players of the software industry using the publicly available published data. We compare the financial data obtained from the models, and use peer average data to provide customized recommendations for each company to improve their shareholder value. Assuming that the companies follow these rules, we also predict future RONW and EVA for the companies for the financial year 2005. Finally, we make several recommendations to software providers for effectively competing in the global arena.
dc.sourceScopus
dc.subjectEconomic value-added (EVA)
dc.subjectShareholder value
dc.subjectStrategic profit model (SPM)
dc.typeArticle
dc.contributor.departmentMECHANICAL ENGINEERING
dc.description.sourcetitleSadhana - Academy Proceedings in Engineering Sciences
dc.description.volume30
dc.description.issue2-3
dc.description.page475-498
dc.description.codenSAPSE
dc.identifier.isiutNOT_IN_WOS
Appears in Collections:Staff Publications

Show simple item record
Files in This Item:
There are no files associated with this item.

Page view(s)

58
checked on Aug 18, 2019

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.