Creating and Measuring Shareholder Value: A Study of Cadila Healthcare Limited (Report‪)‬

Background Creating value for shareholder is now widely accepted as a dominant corporate objective. Traditionally, the motive of business was to maximize profit or wealth. It resulted in unfair practices of business and exploitation of resources. With changing time, it is realized that the main motive for business should be social welfare or creating values for the stakeholders. They are more concerned with the ultimate wealth created for them by their enterprise during a specific period. In recent past, there has been considerable managerial interest in shareholders' value and its management. Important reason for the increased interest is the shift in focus from accounting profit to economic profit. Institutional investors have begun exerting influence on corporate managements to create value for shareholders.