An Empirical Study: Impact of Market Value-Added on Stock Market Returns With Reference to National Stock Exchange, India

Resumen

Every company has value creation as one of its corporate goals, and it is the management of the company's obligation to do so. If not, there is a chance that the lose market value and that investors will sell their securities and withdraw their money. In order to promote create wealth andd retain investors for a longer period of time, corporate management need make the necessary judgments. One of the value-driving strategies used by management and investors in their investment decision-making is Market Value Added (MVA). Therefore, the study looked at how Market Value Added affected the stock market returns of India's NSE 50 (NIFTY) listed companies. Stock Market Returns were used by the study as dependent variable and Return on Equity, Return on Capital Employed, Earnings per share, Dividend per share and current ratio as independent variables during the study period of 2017–2021 Quarterly Annual Reports in order to achieve objective of the study. In addition, this study used the Eviews software package to generate regression coefficients in order to comprehend the time series of data and identify explanatory factors for stock market returns. The study discovered that MVA (14%) had a greater impact on stock market returns than other independent variables.