Does EVA Beat ROA and ROE in Explaining the Stock Returns in Indian Scenario? An Evidence Using Mixed Effects Panel Data Regression Model

2019 ◽  
Vol 44 (2) ◽  
pp. 103-134
Author(s):  
Ashita Agrawal ◽  
Pitabas Mohanty ◽  
Navindra Kumar Totala
Keyword(s):  
Panel Data ◽  
Stock Returns ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Mixed Effect ◽  
Return On Equity ◽  
Effect Model ◽  
Panel Data Regression ◽  
Better Than

We study a panel data of 1,700 Indian firms listed in either National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) for the period 2001 to 2016 to see if economic value added (EVA) explains the annual stock returns of these Indian firms better than return on assets (ROA) and return on equity (ROE). Using mixed effect model, we find that EVA does explain the annual stock returns of these Indian firms better than ROA and ROE.

scholarly journals PENGARUH FIRM SIZE, LEVERAGE DAN PROFITABILITY TERHADAP ECONOMIC VALUE ADDED (EVA) PADA EMITEN MANUFAKTUR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 7 (2) ◽  
pp. 33-46
Author(s):  
Maharani Rahma
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Generalized Least Squares ◽  
Total Asset ◽  
Economic Value Added ◽  
Return On Equity ◽  
Independent Variables

The purpose of this research is to analyze the effect of the Firm Size, Leverage and Profitability Tto Economic Value Added on emiten manufactur in Indonesia Stock Exchange. The selected independent variables in this study are Total Asset, Debt to Equity Ratio (DER) and Return on Equity (ROE) and the dependent varable is Economic Value Added (EVA). This research was conducted on manufactur listed issuers in Indonesia Stock Exchange in 2010-2014 period. Research carried out by using 59 sampels based on stratefied random sampling method. Panel Data Regression Models with Generalized Least Squares (GLS) method is used to data analysis and hipothesis testing. The results of this research and hypothesis testing indicate that: (1) Partially,Total Assets,ROE have a possitively relationships with significantly affect to the EVA and DER have a possitvely relationships with not significantly affect to the EVA.(2) Total Asset, DER and Profitability simultaneously have possitively relationship with  significantly affect to the EVA. (3) model in this study showed a weak pattern relationships between the dependent variable with the independent variables. Keywords : Firm Size, Leverage, Profitability, Economic Value Added, panel data

scholarly journals Pengaruh return on equity, earnings per share, economic value added, dan market value added terhadap return saham perusahaan sektor pertanian yang terdaftar di bursa efek indonesia periode 2010-2016

2018 ◽  
Vol 23 (1) ◽  
Author(s):  
Nastasya Cindy Hidajat
Keyword(s):  
Stock Return ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Return On Equity ◽  
Panel Data Regression ◽  
Data Regression ◽  
Market Value Added

The purpose of this research was to test the effect of return on equity, earning per share, economic value added, and market value added to stock return of agriculture firm that listed at Indonesian Stock Exchange in the period of 2010-2016 either partially or simultaneously. This research used 77 samples. The method used is panel data regression analysis using EViews 6. The results showed that return on equity, earning per share economic value added, and market value added partially has positive significant influence on the stock return, and return on equity, earning per share, economic value added, and market value added simultaneously affect the stock return.

scholarly journals Pengaruh Kinerja Keuangan Terhadap Return Saham Pada Beberapa Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 97-103
Author(s):  
Kurniaty Kurniaty ◽  
Aris Setia Noor
Keyword(s):  
Stock Returns ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Economic Value ◽  
Value Added ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Return On Equity

This study aims to determine the effect of financial performance on stock returns in the manufacturing companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange from 2014 to 2016 simultaneously or partially. The variables used in this study are Return On Assets (X1), Return On Equity (X2), Economic Value Added (X3) as the independent variable and Stock return as the dependent variable.Samples were taken as many as 20 manufacturing industry companies listed on the Indonesia Stock Exchange (IDX) during 2014 to 2016. The data used are financial reports from each sample company which are published on the website ww.idx.co.id. the data analysis method used in this study is a quantitative method by testing classic assumptions, and statistical analysis is multiple linear regression analysis. The sampling method used was purposive sampling.

scholarly journals ECONOMIC VALUE ADDED, MARKET VALUE ADDED, DAN KINERJA KEUANGAN TERHADAP RETURN SAHAM

Media Bisnis ◽  
2021 ◽  
Vol 13 (1) ◽  
pp. 77-88
Author(s):  
RUTJI SATWIKO ◽  
VLADIMIR AGUSTO
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Return On Equity ◽  
Net Profit ◽  
Equity Ratio ◽  
Market Value Added

The research objective is to determine the variables that affect stock returns. The independent variables used in this study are economic value added, market value added, debt to equity ratio, price to book value, total assets turnover, return on equity, net profit margin, and earnings per share. The dependent variable in this study is stock returns. The population in this study were non-financial companies listed on the Indonesia Stock Exchange for 5 consecutive years, from 2013 to 2017. The sample selection method used was purposive sampling. The research sample is 52 non-financial companies listed on the Indonesia Stock Exchange. Hypothesis testing uses multiple regression models. The results indicate that economic value added, debt to equity ratio, total assets turnover, net profit margin, and earnings per share have no effect on stock returns. However, market value added and return on equity have a positive effect on stock returns. Meanwhile, price to book value has a negative effect on stock returns.

scholarly journals PENGARUH ECONOMIC VALUE ADDED DAN PROFITABILITAS TERHADAP RETURN SAHAM PADA PERUSAHAAN SUBSEKTOR PERDAGANGAN RITEL YANG TERDAFTAR DI BEI PERIODE 2013-2017

Kinerja ◽  
2020 ◽  
Vol 2 (02) ◽  
pp. 34-44
Author(s):  
Yayan Hendayana ◽  
Nurlina
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Retail Trading ◽  
Data Collection Technique

This study aims to determine the effect of profitability as measured by Economic Value Added, Return on Assets, and Return on Equity on Stock Returns in retail trading sub-sector companies on the Indonesia Stock Exchange 2013-2017 period. 10 companies have been selected as samples based on predetermined criteria. The approach taken in this research is associative. The data collection technique in this research is the documentation technique. Hypothesis testing uses panel data regression analysis using the Eviews 9 program. Based on the results of the regression coefficient and t-test it shows that partially Economic Value Added and Return on Equity have a significant positive effect on stock returns, while Return on Assets has a significant negative effect on stock returns.

scholarly journals PENGARUH ECONOMIC VALUE ADDED (EVA) DAN RASIO PROFITABILITAS TERHADAP HARGA SAHAM

2018 ◽  
Vol 2 (2) ◽  
pp. 290-303
Author(s):  
Venni Agnatia ◽  
Diah Amalia
Keyword(s):  
Coal Mining ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Equity ◽  
Total Data ◽  
Profitability Ratios

The purpose of this research is to analyze the effect of Economic Value Added (EVA) and profitability ratios partially and simultaneously to the coal mining company’s stock price. The profitability ratios used in this research as independent variable are Return on Asset (ROA), Return on Equity (ROE), Return on Investment (ROI) and Net Profit Margin (NPM) although the stock price as the dependent variable. The samples used were 14 companies from 25 coal mining companies listed in Indonesia Stock Exchange during the period 2011-2017 so total data processed is 98 samples. This research used linear regression analysis with Eviews version 9. The result indicated that partially the variable ROA and ROI has significant positive effect on stock price. EVA, ROE and NPM does not affect the stock price. All variables simultaneously affect to the stock price.   Keyword: EVA, ROA, ROE, ROI, NPM, Stock Price

scholarly journals Perbandingan Pengaruh Laba dan Value Added pada Return Saham

2019 ◽  
pp. 1038
Author(s):  
Gentha Putri Wardana ◽  
Dewa Gede Wirama
Keyword(s):  
Stock Returns ◽  
Information Content ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Theoretical Implication ◽  
Performance Measure ◽  
Company Performance ◽  
Relative Information ◽  
Relative Information Content

The information of value added is considered to be a better company performance measure and has better association on stock returns compared to earning information that is often used. This study aims to compare the relative information content of earnings and value added in explaining stock returns. This research conducted on all companies listed on the Indonesia Stock Exchange in 2013-2017. 308 samples were taken using random sampling method. The data analysis technique was simple linear regression. It was found that EVA and FVA as proxies of value added outperformed earnings. EVA is also found to be more associated with stock returns compared to FVA. The theoretical implication is in addition to references to further research regarding company performance measurement and stock returns. The practical implications is a matter of consideration for investors to make investment decisions and reference for corporate in financial decision making according to preferences of shareholders. Keywords: Earning, economic value added, financial value added, stock return, relative information content  

scholarly journals PENGARUH DEBT TO EQUITY RATIO, RETURN ON ASSETS, PRICE EARNING RATIO DAN ECONOMIC VALUE ADDED TERHADAP RETURN SAHAM PADA PERUSAHAAN SUBSEKTOR PROPERTY DAN REAL ESTATE.

2018 ◽  
Vol 2 (1) ◽  
pp. 12-24
Author(s):  
Julyana Widjayanti ◽  
Risal Rinofah ◽  
Mujino Mujino
Keyword(s):  
Real Estate ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Sampling Technique ◽  
Economic Value Added ◽  
Return On Assets ◽  
Equity Ratio

This study aims to determinethe effect of Debt to Equity Ratio, Return On Assets, Price Earning Ratio, and Economic Value Added on Stock Returns on Property and Real Estate companies listed on the Indonesia Stock Exchange (BEI) for the 2014-2018 period. The sampling technique is purposive sampling. Samples were obtained from 11 Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period. Based on the results of data analysis shows that Debt to Equity Ratio and Return On Assets have a positive and significant effect on Stock Return, Price Earning Ratio and Economic Value Added have a negative and no significant effect on Stock Return. Together Debt to Equity Ratio, Return On Assets, Price Earning Ratio, and Economic Value Added have a positive and significant effect on Stock Return.    

scholarly journals Financial Performance, Capital Structure and Share Ownership Structure, Companies Registered on the Indonesia Stock Exchange (Empirical Study on Manufacturing Companies Listed on the Stock Exchange Indonesia Period 2012-2016)

2019 ◽  
Author(s):  
Purwanti . ◽  
Eddy Irsan Siregar
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Manufacturing Companies ◽  
Leverage Ratio ◽  
Share Ownership ◽  
The Capital Structure

This study will examine Financial Performance, Capital Structure and Structure Share Ownership, Companies that are measured using Economic Value Added (EVA). The sample used in this study uses a method purposive sampling with several predetermined criteria. With using the pooled data method, the study sample consisted of 117 observations data listed on the Indonesia Stock Exchange for the period 2012-2016 obtained from Indonesian Capital Market Directory (ICMD) and also from financial statements annual manufacturing company. The data analysis technique used is regression multiple linear and hypothesis testing using t test and F test with level 5% significance. The results of the study indicate that institutional ownership has greater value than managerial share ownership, so that monitoring functions by institutional shareholders are more effective in monitoring. Leverage ratio on manufacturing companies listed at The Indonesia Stock Exchange during the 2012-2016 research period, is still deep the normal range at the lower level is around 30% - 36%. Asset structure on manufacturing companies listed on the Indonesia Stock Exchange during the period the 2012-2016 research is still quite low, meaning the company asset structure doesnot affect the capital structure. The growth of company assets is not affect the capital structure of registered manufacturing companies on the IndonesiaStockExchangefortheperiod2012-2016.Capital structure,size the company and the risk of stock returns simultaneously influence on financial performance of manufacturing companies listed on the Stock Exchange Indonesia for the period 2012-2016. Institutional share ownership, ownership managerial shares, company size, riskofstockreturnsandcapitalstructurethecompanyhasaninfluenceonthefinancial performance of manufacturing companies listed on the Indonesia Stock Exchange during the 2012 study period - 2016

scholarly journals THE EFFECT OF PROFITABILITY, CAPITAL STRUCTURE AND CORPORATE VALUES ON RETURN OF SHARES (TELECOMMUNICATIONS SUB SECTOR IN INDONESIA STOCK EXCHANGE 2014-2018)

2020 ◽  
Vol 1 (1) ◽  
pp. 69-77
Author(s):  
Asih Try Wulandari ◽  
Aty Herawati
Keyword(s):  
Panel Data ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Series Data ◽  
Annual Data ◽  
Business World ◽  
Telecommunications Sector ◽  
Panel Data Regression ◽  
Data Regression

The development of increasingly stringent business world in Indonesia will create an increasingly sharp competition between companies. Firms in the industry in Indonesia is a land for investors to invest capital to be invested in various forms of securities. So it is not wrong for the company's various aspects and types become part of the capital market. This study was conducted to determine the effect of ROE, DER and PBV to Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange. This study uses annual data for the observation period from 2014 until 2018. The research type is descriptive causality. The data used is the data panel that is a combination of annual time series data and cross section were processed using panel data regression analysis. The population is all Sub-Sector Telecommunications listed in Indonesia Stock Exchange from 2014 until 2018 the number of 5 companies. The sampling technique used purposive sampling, found a sample of four companies with the observation of 5 years in order to obtain total observation as much as 20. Data were obtained from the Indonesia Stock Exchange, and Yahoo Finance. Analysis of the data in this study is panel data regression. The model used is the Common Effect Model. The analysis showed that the ROE does not have a significant effect on stock returns, DER has no significant effect on stock returns, while PBV positive and significant effect Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange.

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