scholarly journals Alternative analyses of market value added: a case study of Thailand

2019 ◽  
Vol 16 (1) ◽  
pp. 65-78
Author(s):  
Paiboon Sareewiwatthana ◽  
Phasin Wanidwaranan
Keyword(s):  
Growth Rate ◽  
Value Creation ◽  
Value Added ◽  
Market Value ◽  
Market Return ◽  
Alternative Techniques ◽  
Market Value Added ◽  
The Stability ◽  
Insight Into

This paper examines the market value added (MVA) of listed companies in Thailand. It is known that the major drawbacks of MVA are size and market return effects. Using the two additional approaches to improve MVA study – MVA change, and the market return adjusted of three-year growth rate of MVA – the better interpretations of MVA in the Thai market during 1999–2018 are obtained. The first approach reduces the market capitalization bias, while the second diminishes the effect of the overall market trend and the stability of firm’s current performance. This study finds that when the two alternative techniques are applied, the annual results of the MVA rankings are not consistent with those of the traditional MVA and thus lead to a new insight into such indicator. Therefore, this study advances the understanding of the market value added and value creation indicators.

Empirical Evidences of Value Creation from Banking Industry of India

2017 ◽  
Vol 8 (3) ◽  
pp. 45
Author(s):  
Arvind Kumar Banger ◽  
S. K. Sharma ◽  
Rahul Chaudhary
Keyword(s):  
Value Creation ◽  
Financial Management ◽  
Banking Industry ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Value Based Management ◽  
Significant Difference ◽  
Market Value Added

In wake of recent economic reforms in India with an aim of stabilizing the economy of India under the era of globalisation, banking industry has experienced a canonical shift in terms of value creation practices, methods and metrics for measuring bank’s performance. Value based management has long been hailed as the major objective of financial management of banks. A new trajectory of value based performance evaluation metrics have evolved and became an imperative of evaluating the performance of banks. The present study has been undertaken with the objective to measure the performance and value creation in the selected banks. The selected sample was taken from the public and private sector banks listed on stock exchange in India. In this study, Economic Value Added (EVA) and Market Value Added (MVA) across the selected banks were calculated based on the accounting figures and their difference was determined. The results showed significant difference between economic value added and market value added in selected banks is quite meaningful and significant.

The Value Of The State-Owned Enterprises In Indonesia: A Case Study Of Privatization

2011 ◽  
Vol 8 (7) ◽  
Author(s):  
Sri Hasnawati
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
The State ◽  
State Budget ◽  
Market Value Added ◽  
The Impact

This research aims to test the impact of the ownership structure toward the performance of the State-Owned Enterprises (SOEs). It examines the relationship between the performance of the SOEs and the market value. The study involves 13 SOEs listed at the Jakarta Stock Exchange. Of the 13 SOEs, 9 were selected as samples. The performance of the SOEs is measured by means of the EVA (Economic Value Added) indicator and the market value by the MVA (Market Value Added) indicator. The result of the study reveals that the ownership structure does not have an impact on the performance of the SOEs, either partially or simultaneously. To a smaller degree, the study also indicates that there is a relationship between the EVA and the MVA. The implication of this study is that the privatization of the SOEs should not fully be used to help with the state budget deficit. That is, the majority of the funds should be allocated for the purpose of developing or expanding the SOEs themselves so that they can perform optimally for the sake of society. Furthermore, the SOEs should be well-managed if they would like to obtain good responses from the market.

scholarly journals Industry-specific determinants of shareholder value creation

2016 ◽  
Vol 33 (2) ◽  
pp. 190-208 ◽  
Author(s):  
John Henry Hall
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Shareholder Value ◽  
Value Added ◽  
Market Value ◽  
Value Drivers ◽  
Content Type ◽  
Financial Decisions ◽  
Independent Variables ◽  
Market Value Added

Purpose Prior studies on determinants of shareholder value creation have reported conflicting and sometimes confusing results. In this study, to obtain more refined and industry-specific results regarding variables determining shareholder value creation, an analysis was performed focusing on different categories of firms or industries. Design/methodology/approach Two dependent and 11 independent variables were applied to five different industries to obtain the best set of significant value drivers of shareholder value creation for a particular industry. Findings Market value added (MVA) is a better indicator of shareholder value created compared to a market adjusted return. Accounting-based variables (EPS, ROA and NOPAT) are superior to economic-based variables (EVA and ROCE) in explaining shareholder value creation, but results differ, depending on the dependent variable chosen as shareholder value creation measure. For each industry, there is a unique set of variables that determine shareholder value creation; the industrial goods industry has seven significant value drivers, namely, EPS, NOPAT, ROCE, the Spread, EVA, EBEI and REVA, whilst for the food and beverages industry, there were only two significant value drivers (EPS and ROA). Originality/value These findings imply that management, analysts and shareholders should, depending on the specific industry in which their firm operates, take into account a more specific set of variables when making their financial decisions, including compensation or reward structuring.

scholarly journals Shareholders’ Value Creation and Market Price of Share: A Study in Indian Context

2017 ◽  
Vol 4 (01) ◽  
Author(s):  
Radhagobinda Basak
Keyword(s):  
Value Creation ◽  
Financial Management ◽  
Economic Value ◽  
Market Price ◽  
Value Added ◽  
Market Value ◽  
Long Run ◽  
Ratio Approach ◽  
Market Value Added ◽  
Degree Of Association

Shareholders’ value creation has become a matter of concern in the world of financial management in recent times. Shareholders’ value creation refers to the net value addition for the shareholders. In the present corporate scenario, financial managers do not concentrate only on profit generation but also on value creation for their shareholders, to ensure the survival of the business in the long run. It has been observed that shareholders’ value creation is related to market price of share. In this paper, an attempt has been taken to measure shareholders’ value creation by five different approaches selecting few sample companies. The approaches are- Market Value to Book Value Ratio approach, Economic Value Added (EVA) approach, Market Value Added (MVA) approach, Shareholders’ Value Added (SVA) approach and Shareholders’ View Point approach. Further, we quantify the degree of association that exists between shareholders’ value creation and market price of share. The data analysis reveals that shareholders’ value per share and market value per share are positively correlated to a considerable extent.

scholarly journals Shareholder Value Index for Saudi Banks

2017 ◽  
Vol 8 (4) ◽  
pp. 196
Author(s):  
Sunitha Kumaran
Keyword(s):  
Value Creation ◽  
Performance Metrics ◽  
Low Cost ◽  
Shareholder Value ◽  
Value Added ◽  
Market Value ◽  
Islamic Banks ◽  
Wealth Creation ◽  
Binary Logistic Regression Model ◽  
Market Value Added

This paper aims to examine the shareholder value efficiency and build a Shareholder Value Index for Saudi banks between 2010 and 2014. Shareholder value efficiency is measured using value based performance metrics and binary logistic regression model was adopted to develop the Shareholder Value Index for Saudi banks. The Shareholder Value Index developed provides the probability of a bank’s competence to create/erode shareholders' wealth. The study finds that Economic Value Added (EVA) is the value-based performance metric that comes closer than any other to capture the true Economic Profit and the market performance (Market Value Added) of banks. Positive EVA of most of the commercial banks denote that they are more Shareholder value efficient than Islamic banks. High Market Value Added (MVA) represents a highly positive outlook of the investors on the Saudi banks' performance. Value creation is significantly linked to high Net Operating Profit After Tax and a low cost of capital. The most significant observation is that not all banks with highest capital employed are the highest value creators. The Shareholder Value Index developed indicate that majority of Saudi banks demonstrate a higher probability of shareholder value creation. Few Islamic banks showed a less probability of wealth creation for the period of study and are predicted to improve the shareholder value creation ability through their aggressive strategy in the future.

scholarly journals Do Synergies Pop up Magically in Digital Transformation-Based Retail M&A? Valuing Synergies with Real Options Application

2020 ◽  
Vol 6 (1) ◽  
pp. 18
Author(s):  
Andrejs Čirjevskis
Keyword(s):  
Real Options ◽  
Quantitative Research ◽  
Success Factors ◽  
Value Added ◽  
Market Value ◽  
Digital Transformation ◽  
Quantitative Research Methods ◽  
Qualitative And Quantitative ◽  
Market Value Added

This paper aims to explore and to illustrate success factors of reciprocal synergies of digital transformation-based merger and acquisition (M&A) deals in the grocery retail industry. The author carried out a case study on the merger of Ahold Delhaize in 2016. The paper’s contribution is a conceptual model of research that helps in pre-acquisition analysis on competence-based synergies in M&A to value strategic synergies as market value added a using real options application. By combining qualitative and quantitative research methods, the author provides empirical evidence to indicate the validity and value of the proposed research framework for both scholars and practitioners alike.

Determinants Of Market Value Added Some

2011 ◽  
Vol 1 (4) ◽  
pp. 16-20
Author(s):  
Dr. A. Vijayakumar Dr. A. Vijayakumar ◽  
Keyword(s):  
Value Added ◽  
Market Value ◽  
Market Value Added

Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Pada Nilai Perusahaan

2011 ◽  
Vol 3 (2) ◽  
pp. 1-19
Author(s):  
Chermian Eforis ◽  
Rosita Suryaningsih
Keyword(s):  
Corporate Social Responsibility ◽  
Annual Report ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Market Value Added ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Simple Regression

This study aims to determine the influence of the level of CSR disclosure in annual report to corporate values that proxies with Economic Value Added (EVA) and Market Value Added (MVA).   The objects of this study are companies that were included in Kompas 100 Edition of the second review in 2010.The chosen model of this research is simple regression which can be defined as a model that used the normal probability plot  for data normality test, DurbinWatson test for autocorrelation, graph plots to test heteroscedasticity, and saw the value of tolerance and VIF for multicollinearity test. Hypothesis is analyzed using simple regression method  The results showed that the level of CSR disclosure contained in the annual report has a significant influence on the EVA. The same results were also found on the MVA, where the level of CSR disclosure contained in the annual report has a significant influence on the MVA. Key words: Corporate Social Responsibility, Economic Value Added, Market Value Added

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