TRADITIONAL V/S COEVAL TOOLS FOR MEASURING FINANCIAL
PERFORMANCE: AN EMPIRICAL STUDY OF HUL LTD
Hardik Bhadeshiya
Assistant Professor, Department of Commerce and Business Management, Faculty of
Commerce, The Maharaja Sayajirao University of Baroda, Vadodara. Gujarat, India.
Prakash Patel
Assistant Professor, Department of Commerce and Business Management, Faculty of
Commerce, The Maharaja Sayajirao University of Baroda, Vadodara. Gujarat, India.
ABSTRACT
Accounting profit creates a hypothetical picture about firm’s performance and so only
traditional tools for measuring shareholders’ value are becoming outdated. The current
research paper is related to fundamental analysis, where it has been attempted to analyze
the real value of the company by applying contemporary tools by selecting the secondary
data of last 10 years i.e. from 2009 to 2019. In contemporary tools Economic Value
Added (EVA) and Market Value Added (MVA) have been selected and in traditional
tools Dividend paid, Earnings per share (EPS) and Return on Investment (ROI) are
adapted. The calculation of EVA and MVA is done with the formulas given by Stern
Stewart & co. and furthermore to analyze the association of variables like EVA, MVA,
Dividend paid, ROI and EPS multiple co-relation analysis technique is used.
Additionally, Multiple Regression model is established between EVA, MVA, Dividend
Paid, ROI and EPS.
Keywords: HUL, EVA, MVA, Dividend Paid, EPS
Mukt Shabd Journal
Volume IX, Issue V, MAY/2020
ISSN NO : 2347-3150
Page No : 2803
1. Introduction
Creating shareholders’ value is the key to success in today's marketplace where there's
increasing pressure on corporate executives to quantify, manage and report it on a daily
basis. In the emerging field of shareholders’ value analysis, various measures are
established which claim to measure the creation of shareholder’s value and wealth.
Moreover, corporate executives are under increasing pressure to demonstrate daily that
they're creating shareholders’ value. This pressure has led to an emergence of a spread of
measures which claim to quantify value-creating performance. Creating value for
shareholders is now a widely accepted corporate objective. The interest in value creation
has been stimulated by several developments.
2. Hindustan Unilever Limited: A company
HUL is functioning to create a higher future daily, and aids which make people feel good,
look good and obtain extra out of life with products and rendering services that are upright
for them and good for others. With quite 35 brands spread through 20 discrete types like
detergents, Shampoo, soaps, deodorants, skin care, toothpastes, cosmetics, packaged
foods, coffee, ice cream, and water purifiers, the corporate may be a part of the way of
life of countless customers athwart India. Its range comprises leading household brands
like Lifebuoy, Lux, Rin, Surf Excel, Pond’s, Wheel, Vaseline, Lakmé, Sunsilk, Clinic
Plus, dove, Axe, Closeup, pepsodent, Brooke Bond, kwality wall’s, Knorr, Kissan, brue,
Wall’s and Pureit. the corporate has the manpower of around 18,000 people and contains
a net sale of ` 37,660 crores (Accounting year 2018-19). HUL may be a minor company
of Unilever, one amongst the world’s leading distributor of Food, Refreshment products,
attention and residential care with turnover in over 190 countries and an annual turnover
of 52.7 billion USD in 2019. Unilever has quite 67% stake in HUL. In India HUL has
capitalization of ` 4,40,376.89 crores, which is that the highest as compared to its peers
like Dabur India, Godrej Consumer, Marico, Colgate, P & G, etc. [27]
3. Review of Literature
Various articles dealing with the theory and applications of EVA & MVA have been
published over the years, but the concept is still under development.
To find out the effect of return on investment, earning per share, operational cash flow,
economic value added, and market value added towards the stock
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return at manufacturing companies in Indonesia Stock Exchange [11] explored that
insignificant Return on investment, Earning per share, and Market value added towards
stock return, can be a suggestion to do more research with longer duration of observation
and also included all sectors in Indonesia Stock Exchange. The importance of dividend
payouts i.e. dividends really necessary to support a company's stock price and, if so, why
has been reported by [17] and the question of optimal capital structure i.e. why debt may
be cheaper than equity. But the foremost important focus is corporate performance
measurement and therefore the use of executive pay to strengthen management incentives
to extend efficiency and value. The discussion regarding blind spots and distortions that
make EBITDA highly unreliable and misleading as a measure of normalized, ongoing
profitability was done by [13]. The comparison between EBITDA with EVA,
or quantity Added, a measure of economic profit net of a full cost-of-capital charge,
demonstrates EVA's ability to produce managers and investors with far more clarity into
the levers that are driving corporate performance and determining intrinsic value. And in
support of his demonstration, he reports the finding of his analysis of Russell 3000 public
companies that EVA explains almost 20% relatively EBITDA of their changes in value,
while at the identical time providing much more insight into the way to improve those
values. The firm value of Reysa? Transportation and Logistics Trade transportation
sectors is determined by [14] using EVA to see which of the firm valuation methods
yields closer to the market price and for the same the firm's 2017 and 2018 values were
found and concluded that EVA gives the closest result to the market price in
transportation sectors.
4. Research Methodology
The study is carried out to do quantitative and qualitative analysis of selected private
banks of India. For this purpose, descriptive and diagnostic research design has been
adopted and it is based on the secondary data.
5. Objectives of the study
The objective of the study is to analyze EVA, MVA, Dividend Paid, EPS, ROI and the
relationship in between these all of HUL for the period under study
6. Hypothesis of the study
A study would be consisting of the following hypothesis and to carry out a further
analysis suitable test will be applied on the same.
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1. HO1: There is no relationship between EVA & MVA of HUL Limited
2. HO2: There is no relationship between EVA & ROI of HUL Limited
3. HO3: There is no relationship between EVA & Dividend paid of HUL Limited
4. HO4: There is no relationship between EVA & EPS of HUL Limited
5. HO5: There is no relationship between MVA & ROI of HUL Limited
6. HO6: There is no relationship between MVA & Dividend Paid of HUL Limited
7. HO7: There is no relationship between MVA & EPS of HUL Limited
8. HO8: There is no relationship between ROI & Dividend paid of HUL Limited
9. HO9: There is no relationship between ROI & EPS of HUL Limited
10. H10: There is no relationship between Dividend paid & EPS of HUL Limited
7. Scope of the study
The study will define a relationship between EVA, MVA, ROI, Dividend Paid and EPS.
EVA & MVA will be representing as modern tools of performance measurement, whereas
Dividend paid, ROI and EPS will become a representative of traditional tools of
performance measurement.
8. Period of the study
The study is based on the financial data of HUL limited of last 10 accounting years i.e.
from April 2009 to March 2019.
9. Data Collection Method
In this study secondary data collection method is applied and data is collected through
various resources like annual report of the company and from the websites of money
control, RBI, BSE, and NSE.
10. Tools and techniques used to analyze and interpret the data
10.1 Accounting Tools
10.1.1 Traditional Tools: Dividend, Return on Investment (ROI),
Earnings Per Share (EPS)
10.1.2 Coeval Tools: Economic Value Added (EVA), Market Value
Added (MVA)
10.2 Statistical Tools
10.2.1 Mean, Standard Deviation, Multiple Correlation Analysis,
Multiple Regression
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11. Traditional Tools to measure the Shareholders’ value
11.1 Dividend
Dividend is part of profits of a company which is distributed by the company among its
shareholders. Dividend paid represents a cash outflow which depletes the cash resources.
It is the reward of the shareholders for investments made by them in the shares of the
company. The investors are interested in earning the maximum return on their investment
and to maximization their wealth.
It can be analyzed from the above Table 1 that dividend paid of the company is also
increased over the years from ` 1,417.94 crore in 2009 to ` 4,546 crores in 2019 which
symbolizes that the company is doing wealth creation of its’ shareholder’s not only by
raising the market price of the share, but company is paying dividend too.
11.2 Return on Investment (ROI)
It is a traditional technique of measuring shareholder’s value where relationship is
established between Earnings before Interest and Tax (EBIT) and Capital Employed. It
signifies the earning potential of the company in relation to its total capital invested.
𝐑𝐎𝐈i =𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐛𝐞𝐟𝐨𝐫𝐞 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐚𝐧𝐝 𝐓𝐚𝐱 (𝐄𝐁𝐈𝐓)
𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐝
From the above-mentioned Table 1 it can be analyzed that there is increasing trend in
ROI of the company from 38% in 2010 to 109% in 2019. It shows the positive image of
the company and here company proves that management is doing creative use of its
resources.
11.3 Earnings per Share (EPS)
Earnings per share determines the relationship between earnings available to the equity
shareholders and no of shares outstanding on the last day of the accounting year. it has
been calculated in the study undertaken using the following formulae.2
Earnings per share =Earnings available to equity shareholders
Number of Shares outstanding
From the above table 1 it can be analyzed that EPS is increased over the years from `10.09
in 2010 to ` 27.9 in 2019. Overall, it is showing increasing trend.
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Table: 1 Dividend Paid, Return on Investment (ROI) and
Earnings per Share (EPS)
Year 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Dividend
Paid 4546 3896 3571 3354 3245.32 2811.43 3999.99 1620.94 1410.6 1417.94
ROI 109% 98% 87% 83% 90% 87% 99% 60% 45% 38%
EPS 27.9 24.2 20.8 19.12 19.95 17.88 17.56 12.45 10.68 10.09
12. Coeval Tools to Measure the Shareholders’ value
The shareholder value creation approach helps to strengthen the competitive position of
the firm by focusing on wealth creation. It provides an objective and consistent
framework of evaluation and decision-making across all functions, departments and units
of the firm.
12.1 Economic Value Added (EVA)
The concept of Economic Value Added (EVA) is a revolutionary way to measure the
value of a business. In its simplest form, EVA is a system that determines companies’
worth and performance based on their economic reality, not numbers produced according
to traditional accounting rules. It is calculated as,
EVAii = Net Operating Profit after Tax (NOPAT) – Capital Charge
Where, Capital Charge = WACC*Capital Employed or Invested
From the above Table 2 it can be analyzed that EVA is increasing over the years from
2010 (` 2030.48 Crores) to 2019 (`4967.15 Crores). WACC is increased more than double
from 2018 to 2019 i.e. 5.80% to 11.27%. Capital employed means the total amount of
owned and borrowed capital invested by the company which is almost stable over the
years. Increase in WACC is due to increase in cost of equity as in 2018 it was 6.77%
which is increased to 13.74% in 2019.
12.2 Market Value Added (MVA)
[6] defines MVA as the excess of market value of capital (both debt and equity) over the
book value of capital. If the MVA is positive, the company has created wealth for its
shareholders. According to [15], to determine the market value, equity is taken at the
market price on the date the calculation is made, and debt at book value. The total
investment in the company since day one is then calculated as interest-bearing debt and
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equity, including retained earnings. Present market value is then compared with total
investment. If the former amount is greater than the former, the company has created
wealth.
MVAiii = Market Capitalization – Net Worth
It can be analyzed from Table (2) that value of MVA is increasing over the years from `
49,292 crores in 2010 to ` 3,59,398 crores in 2019. The company’s MVA is increased
more than 6 times in last 10 years and it is due to increase in market capitalization of the
company’s share in FMCG market.
Table 2: Economic Value Added (EVA) and Market Value Added (MVA)
Year 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
(` in Crores)
EVA 4967.15 4743.55 4192.70 3747.09 4019.40 3553.46 3747.46 2441.79 2176.75 2030.48
MVA 359398 280041 188957 180544 183266 126568 97122 84123 57917 49292
13. Analysis & Interpretation of Data
13.1 Correlational Analysis
The data is processed by applying multiple correlation matrix to test the hypothesis.
Table 3: Multiple Correlation
MVA ROI Dividend Paid EPS
EVA Pearson Correlation .907** .949** .958** .986**
Sig. (2-tailed) .000 .000 .000 .000
MVA Pearson Correlation .782** .813** .960**
Sig. (2-tailed) .008 .004 .000
ROI Pearson Correlation .965** .918**
Sig. (2-tailed) .000 .000
Dividend
Paid
Pearson Correlation .931**
Sig. (2-tailed) .000
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
(Source: calculated through SPSS)
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Table: 4 Hypothesis Testing
The data is tested at 1% level of significance and the result is derived as under.
Sr.
No.
Hypothesis Pearson
Correlation
(r)
Sig. (2 tailed) Result
1 HO1: There is no relationship between
EVA & MVA of HUL Limited
0.907 0.000 Correlation Significant
2 HO2: There is no relationship between
EVA & ROI of HUL Limited
0.949 0.000 Correlation Significant
3 HO3: There is no relationship between
EVA & Dividend paid of HUL Limited
0.958 0.000 Correlation Significant
4 HO4: There is no relationship between
EVA & EPS of HUL Limited
0.986 0.000 Correlation Significant
5 HO5: There is no relationship between
MVA & ROI of HUL Limited
0.782 0.008 Correlation Significant
6 HO6: There is no relationship between
MVA & Dividend Paid of HUL Limited
0.813 0.004 Correlation Significant
7 HO7: There is no relationship between
MVA & EPS of HUL Limited
0.960 0.000 Correlation Significant
8 HO8: There is no relationship between
ROI & Dividend paid of HUL Limited
0.965 0.000 Correlation Significant
9 HO9: There is no relationship between
ROI & EPS of HUL Limited
0.918 0.000 Correlation Significant
10 H10: There is no relationship between
Dividend Paid & EPS of HUL Limited
0.931 0.000 Correlation Significant
With the help of co-relation analysis, one can analyze the association of one variable to
another but to measure the influence of independent variable to dependent variable one is
required to undergo for regression analysis.
13.2 Regression Analysis
Regression analysis analyzes the statistical association in between of two or more
variables. In simple regression, there are two variables i.e. independent variable which is
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the cause of the behavior of another one i.e. dependent variable. But when there are more
than two variables than in that case, we must go for multiple regression analysis. In case
of current research, the relationship is required to be established in between of Economic
Value Added, Market Value Added, Dividend Paid, Return on Investment, Earnings per
share, Hence, in this case it is required to undergo with multiple regression analysis.
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13.2.1 Multiple Regression Model 1
In this model EVA is set as Dependent variable and other variables like MVA, Dividend Paid, ROI, and EPS are treated as independent
variable. The model finds the extends to which EVA as a dependent variable influences other independent variables.
𝑬𝑽𝑨 = 𝜶𝒊 + 𝜷𝟏 𝑴𝑽𝑨𝒊,𝒕 + 𝜷𝟐 𝑫𝑷𝒊,𝒕 + 𝜷𝟑 𝑹𝑶𝑰𝒊,𝒕 + 𝜷𝟒 𝑬𝑷𝑺𝒊,𝒕 (𝑾𝒉𝒆𝒓𝒆 𝜶 𝒊𝒔 𝒊𝒏𝒕𝒆𝒓𝒄𝒆𝒑𝒕, 𝜷 𝒊𝒔 𝑹𝒆𝒈𝒓𝒆𝒔𝒔𝒊𝒐𝒏 𝑪𝒐𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕, 𝒂𝒏𝒅 𝝐 𝒊𝒔 𝒕𝒉𝒆 𝒆𝒓𝒓𝒐𝒓)
Table 5: Multiple Regression Model 1
Equation Parameters 95% Confidence/Autocorrelation
R Squared 0.9916 3.597 Durbin-Watson Statistic
Adjusted R Squared 0.9849 0.53 - 1.78 Negative autocorrelation detected
Standard Error 126.8581 3.633 Critical F-Statistic - 95% Confidence
F - Statistic 147.3485 85.94% Confidence to which analysis holds
Multiple Regression Equation Independent Analysis Auto Correlation Multicollinearity
Coefficients Standard
Error t Stat
p
Value
R
Squared Coefficient
Intercept Dl=0.88 Du=1.32
Adjusted R-
Squared against
other Independ.
Variables
with RSQ at
> 90% Intercept -463.018 473.228 -0.978 37.28% DW-Stat
MVA -0.007 0.004 -1.865 12.12% 82.31% 0.01 2054.29 1.83 97.81% EPS
DP 0.061 0.166 0.369 72.71% 91.85% 0.87 969.89 2.36 92.48% ROI
ROI -720.315 1,004.258 -0.717 50.53% 90.00% 4088.79 303.69 1.18 95.35% DP
EPS 302.878 99.236 3.052 2.84% 97.16% 177.29 361.01 1.83 99.17% MVA
98.49% of the change in EVA can be explained by the change in the 4 independent variables to +/- on result of Regression Equation Therefore analysis
is Significant
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13.2.2 Multiple Regression Model 2
In this model MVA is set as Dependent variable and other variables like EVA, Dividend Paid, ROI, and EPS are treated as independent
variable. The model finds the extends to which MVA as a dependent variable influences other independent variables.
𝑴𝑽𝑨 = 𝜶𝒊 + 𝜷𝟏 𝑬𝑽𝑨𝒊,𝒕 + 𝜷𝟐 𝑫𝑷𝒊,𝒕 + 𝜷𝟑 𝑹𝑶𝑰𝒊,𝒕 + 𝜷𝟒 𝑬𝑷𝑺𝒊,𝒕 (𝑾𝒉𝒆𝒓𝒆 𝜶 𝒊𝒔 𝒊𝒏𝒕𝒆𝒓𝒄𝒆𝒑𝒕, 𝜷 𝒊𝒔 𝑹𝒆𝒈𝒓𝒆𝒔𝒔𝒊𝒐𝒏 𝑪𝒐𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕, 𝒂𝒏𝒅 𝝐 𝒊𝒔 𝒕𝒉𝒆 𝒆𝒓𝒓𝒐𝒓)
Table 6: Multiple Regression Model 2
Equation Parameters 95% Confidence/Autocorrelation
R Squared 0.9914 2.587 Durbin-Watson Statistic
Adjusted R Squared 0.9845 0.53 - 1.78 No autocorrelation detected
Standard Error 12410.1768 3.633 Critical F-Statistic - 95% Confidence
F - Statistic 143.9846 85.94% Confidence to which analysis holds
Multiple Regression Equation Independent Analysis Auto Correlation Multicollinearity
Coefficients Standard
Error t Stat p Value
R Squared Coefficient Intercept Dl=0.88 Du=1.32
Adjusted R-
Squared against
other Indep
Variables with
RSQ at > 90% Intercept -1,02,309.532 21,449.483 -4.770 0.50% DW-Stat
EVA -62.663 33.596 -1.865 12.12% 82.31% 87.74 -151815.66 2.02 97.86% DP, EPS
DP -5.580 16.254 -0.343 74.53% 66.12% 71.20 -51984.38 2.36 92.51% EVA, ROI
ROI -1,68,378.148 70,531.569 -2.387 6.26% 61.12% 325884.41 -98969.03 1.18 90.98% DP
EPS 35,285.845 4,561.881 7.735 0.06% 92.11% 16695.23 -140709.42 1.83 96.25% EVA
98.45% of the change in MVA can be explained by the change in the 4 independent variables to +/- on result of Regression Equation Therefore analysis is
Significant
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13.2.3 Multiple Regression Model 3
In this model Dividend Paid is set as Dependent variable and other variables like EVA, MVA, ROI, and EPS are treated as independent
variable. The model finds the extends to which DP as a dependent variable influences other independent variables.
𝑫𝑷 = 𝜶𝒊 + 𝜷𝟏 𝑬𝑽𝑨𝒊,𝒕 + 𝜷𝟐 𝑴𝑽𝑨𝒊,𝒕 + 𝜷𝟑 𝑹𝑶𝑰𝒊,𝒕 + 𝜷𝟒 𝑬𝑷𝑺𝒊,𝒕 (𝑾𝒉𝒆𝒓𝒆 𝜶 𝒊𝒔 𝒊𝒏𝒕𝒆𝒓𝒄𝒆𝒑𝒕, 𝜷 𝒊𝒔 𝑹𝒆𝒈𝒓𝒆𝒔𝒔𝒊𝒐𝒏 𝑪𝒐𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕, 𝒂𝒏𝒅 𝝐 𝒊𝒔 𝒕𝒉𝒆 𝒆𝒓𝒓𝒐𝒓)
Table 7: Multiple Regression Model 3
Equation Parameters 95% Confidence/Autocorrelation
R Squared 0.9512 2.754 Durbin-Watson Statistic
Adjusted R Squared 0.9122 0.53 - 1.78 No autocorrelation detected
Standard Error 337.4988 3.633 Critical F-Statistic - 95% Confidence
F - Statistic 24.3619 85.94% Confidence to which analysis holds
Multiple Regression Equation Independent Analysis Auto Correlation Multicollinearity
Coefficients Standard
Error t Stat
p
Value
R
Squared Coefficient
Intercept Dl=0.88 Du=1.32
Adjusted R-
Squared against
other Indep
Variables
with RSQ at
> 90% Intercept -1,270.328 1,251.322 -1.015 35.66% DW-Stat
EVA 0.433 1.174 0.369 72.71% 91.85% 1.06 -783.15 2.02 98.70% EPS
MVA -0.004 0.012 -0.343 74.53% 66.12% 0.01 1494.74 1.83 98.68% EPS
ROI 1,736.797 2,696.211 0.644 54.79% 93.05% 4592.01 -671.98 1.18 95.44%
EPS 110.395 443.987 0.249 81.35% 86.58% 184.85 -350.21 1.83 99.71% EVA, MVA
91.22% of the change in Dividend Paid can be explained by the change in the 4 independent variables to +/- on result of Regression
Equation Therefore analysis IS Significant
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13.2.4 Multiple Regression Model 4
In this model ROI is set as Dependent variable and other variables like EVA, MVA, Dividend Paid, and EPS are treated as independent
variable. The model finds the extends to which ROI as a dependent variable influences other independent variables.
𝑹𝑶𝑰 = 𝜶𝒊 + 𝜷𝟏 𝑬𝑽𝑨𝒊,𝒕 + 𝜷𝟐 𝑴𝑽𝑨𝒊,𝒕 + 𝜷𝟑 𝑫𝑷𝒊,𝒕 + 𝜷𝟒 𝑬𝑷𝑺𝒊,𝒕 (𝑾𝒉𝒆𝒓𝒆 𝜶 𝒊𝒔 𝒊𝒏𝒕𝒆𝒓𝒄𝒆𝒑𝒕, 𝜷 𝒊𝒔 𝑹𝒆𝒈𝒓𝒆𝒔𝒔𝒊𝒐𝒏 𝑪𝒐𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕, 𝒂𝒏𝒅 𝝐 𝒊𝒔 𝒕𝒉𝒆 𝒆𝒓𝒓𝒐𝒓)
Table 8: Multiple Regression Model 4
Equation Parameters 95% Confidence/Autocorrelation
R Squared 0.9719 1.747 Durbin-Watson Statistic
Adjusted R Squared 0.9494 0.53 - 1.78 No autocorrelation detected
Standard Error 0.0538 3.633 Critical F-Statistic - 95% Confidence
F - Statistic 43.2377 85.94% Confidence to which analysis holds
Multiple Regression Equation Independent Analysis Auto Correlation Multicollinearity
Coefficients Standard
Error t Stat
p
Value
R
Squared Coefficient
Intercept Dl=0.88 Du=1.32
Adjusted R-
Squared against
other Indep
Variables
with RSQ
at > 90% Intercept -1,270.328 1,251.322 -1.015 35.66% DW-Stat
EVA 0.433 1.174 0.369 72.71% 91.85% 1.06 -783.15 2.02 98.70% EPS
DP -0.004 0.012 -0.343 74.53% 66.12% 0.01 1494.74 1.83 98.68% EPS
ROI 1,736.797 2,696.211 0.644 54.79% 93.05% 4592.01 -671.98 1.18 95.44%
EPS 110.395 443.987 0.249 81.35% 86.58% 184.85 -350.21 1.83 99.71% EVA, MVA
94.94% of the change in SP500 can be explained by the change in the 4 independent variables to +/- on result of Regression Equation Therefore
analysis is Significant
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14. Limitations of the study
The present research paper is purely based on the secondary data and financial
information produced by the company in its annual report. So, if a company has made
any manipulations, mistake, or articulations to produce these data then it leads to affect
the research paper too. Moreover, the selected period under the study is of 10 years which
may also would not be sufficient to derive the conclusion.
15. Conclusion
EVA and MVA are not only tools to measure standard performance of the company but
it breaks the odds of traditional tools and hence they are treated as more appropriate tools
for measuring performance of the study. HUL is the company whose profit is grown up
by 12% in Q3 of accounting year 2019-20, and operating performance has beat the analyst
estimates regarding the company. So, researcher has attempted through this research
paper that company has the same level of earning potentials when it comes to the modern
tools of accounting i.e. EVA and MVA.
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