PRIMARY OBJECTIVE OF CORPORATE MANAGEMENT
The major objective of corporate finance by Indian corporate are summarized as follows.
• The two most important objectives of management .decision making in corporate finance in India are: o(i) maximization of earnings before interest and tax and earnings per share percent and (ii) maximization of the spread between return and weighted avenge cost of capital that is, economic value added (EVA) (76 percent).
• Large firm (on the basis of sales and market capitalization) high growth firms and firms with high exports significant focus’s on maximizing than small, low growth and low exports firms respectively.
• There is no significant difference in the EVA as a corporate finance objective followed ·by ‘he firms in public and private sectors.
• The spread between cash now return on investment and that is cash value added is the third most important objective (54 percent) of corporate finance management for large firms based on market capitalization,
• Yet another important objective is the maximization of market capitalization, The MVA (market value added) objective is more likely to be followed by public sector units than by private sector firms.
• The overwhelming majority of corporate (70 percent) consider maximizing per cent return on investment in assets as the most important.
• Another preferred goal is desired growth rate in EPS/maximize aggregate earnings. Wealth maximization/maximization of share prices is the least preferred goal of the sample corporate.