Financial statements savvy and other users may not be as knowledgeable as those who have been touting EPS as the holy grail of financial performance for too long. Companies needed to report income in every three months for the companies in the India, suitable “quarteritis” labeled and heavy pressure on managers to give acceptable EPS performance. Internationally, managers have aware of the effect of EPS surprise at the prices of shares and resulting in suspicious extreme emphasis on short term EPS performance. Earning-linked compensation plans are spinoff this passion with the performance of short-term earnings. The pressure coming from the intestinal wires of constantly positive EPS growth has deemed the depth of managerial behavior. Instead of focusing on efforts and energy on those projects, which will maximize shareholder money in the long run, the manager attacks all types of plans for the management of EPS. Keeping this fact that the manger’s performance is often measured in the context of EPS, manger does not measure the expectations for remuneration and job safety, clearly clear. This study underlines the popularity of EPS as the financial performance criteria, but also adds three clear limitations, i.e. the inability to refresh an underlying bias to shareholder fund, EPS management and positive EPS growth. After this, the study is based on the issue of bias related to the positive EPS growth and uses the case study approach to analyze EPS development of three companies. The conclusion is that inflation, retained earnings and increased asset investment due to debt, the operating leverage and the financial leverage is the main factors determined by the EPS growth. Apart from four factors, the EPS growth is said to be “additional” EPS growth, and no one of the three companies selected was able to generate positive “extra”.

Keywords: Performance, Behaviour, Financial, Shareholder’s Worth, Investment, Leverage, Wealth.