scholarly journals THE COMPANY‘S LIQUIDITY AS INSTRUMENT FOR VALUE CREATION OF THE COMPANY / ĮMONĖS FINANSINIS LIKVIDUMAS KAIP PRIEMONĖ ĮMONĖS VERTEI DIDINTI

2016 ◽  
Vol 8 (2) ◽  
pp. 192-199
Author(s):  
Ieva Bartkauskaitė ◽  
Jelena Stankevičienė
Keyword(s):  
Value Creation ◽  
Financial Analysis ◽  
Economic Value ◽  
Value Added ◽  
The State ◽  
Economic Value Added ◽  
Working Capital ◽  
Liquidity Management ◽  
Practical Operation ◽  
Dupont Analysis

The liquidity indicators in the financial analysis are considered to be one of the most important parameters that characterise the state of the company. Since the liquidity is an integral part of the company’s value, the question is, whether it is possible to affect the company’s value by controlling the liquidity of the assets of the company, and to which variables the attention should be paid seeking to increase company‘s value. The model of the de-pendence of liquidity variables, according to the DuPont analysis and working capital, which affects the the value of the company EVA, is presented as well as the practical operation of the model and the conclusions. The results achieved by research are useful to the managers and shareholders of the company, evaluating the opportunity to increase the value of the company, searching for additional arguments for company’s liquidity management. Likvidumo rodikliai traktuojami kaip vieni iš svarbiausių įmonės finansinę būklę rodančių rodiklių. Likvidumas neatsiejamai veikia įmonės vertę. Svarbu nustatyti, kaip, kontroliuojant įmonės likvidumo rodiklius, teigiamai paveikti įmonės vertę ir identifikuoti esminius įmonės finansinio likvidumo veiksnius, kuriems reikėtų skirti daugiausiai dėmesio, siekiant maksimizuoti įmonės vertę. Straipsnyje pateikiamas išvestinis DuPont analizės modelis, pagal kurį vertinamas įmonės grynasis apyvartinis kapitalas ir pridėtinė ekonominė vertė (angl. Economic Value Added – EVA). Ši minėto modelio kintamųjų priklausomybės schema pagrindžia likvidumo poveikį galutinei įmonės vertei. Pateikiamas praktinis modelio veikimas bei išvados. Šis išvestinis DuPont analizės modelis, paremtas apyvartinio kapitalo ir EVA kintamaisiais – tai instrumentas, naudingas įmonės vadovams bei akcininkams, siekiant padidinti įmonės vertę valdant įmonės likvidumą, ieškant papildomų galimybių didinti įmonės likvidumą.

scholarly journals ANALISIS ECONOMIC VALUE ADDED (EVA) DAN MARKET VALUE ADDED (MVA) SEBAGAI ALAT UKUR KINERJA KEUANGAN PT GARUDA INDONESIA TBK TAHUN 2017 -2019

2020 ◽  
Vol 2 (1) ◽  
pp. 31-45
Author(s):  
Ferry Irawan ◽  
Nico Yudha Manurung
Keyword(s):  
Financial Performance ◽  
Stock Price ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
The State ◽  
Economic Value Added ◽  
Public Company ◽  
Market Value Added

PT Garuda Indonesia Tbk was one of the state-owned corporation that have go public on Bursa Efek Indonesia (BEI). As a public company, PT Garuda Indonesia should create a good financial performance to attract financier (investor or creditor). The purpose of this study were to measure the financial performance by Economic Value Added (EVA) and Market Value Added (MVA). The result of this study is the company get a negative EVA in 2017 until 2019 which mean the company was not able to create value added for financier. In 2017 and 2018, MVA get a negative value which mean the company was not able to create value added for investor. In 2019, MVA get a positive value because the company’s stock price increased 73% from previous year.PT Garuda Indonesia Tbk merupakan salah satu Badan Usaha Milik Negara (BUMN) yang telah go public di Bursa Efek Indonesia (BEI). Sebagai perusahaan terbuka, PT Garuda Indonesia Tbk harus menciptakan kinerja keuangan yang baik untuk menarik pemodal (investor atau kreditur). Tujuan dari penelitian ini adalah untuk mengukur kinerja keuangan dengan Economic Value Added (EVA) dan Market Value Added (MVA). Hasil penelitian ini adalah perusahaan memperoleh nilai EVA yang negatif pada 2017-2019 yang berarti perusahaan tidak berhasil menciptakan nilai tambah bagi para pemodal. Pada 2017 dan 2018, MVA memperoleh nilai yang negatif yang berarti perusahaan gagal menciptakan nilai tambah pagi para investor. Pada 2019, MVA memperoleh nilai yang positif karena harga saham perusahaan yang meningkat sebesar 73% dari tahun sebelumnya.

Siemens' Value-Driver Tree in Digitalization

2021 ◽  
pp. 197-220
Author(s):  
Cozmiuc Claudia Diana
Keyword(s):  
Value Creation ◽  
Business Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Sufficient Data ◽  
Product Lifecycle ◽  
Open Networks ◽  
Start Ups

This chapter is a descriptive and explicative case study about value creation at Siemens in an uncertain and in a certain environment. Siemens has implemented economic value-added-based management since 1998. The empirical data analysis highlights value creation at Siemens at the beginning of the innovation lifecycle, when the environment is uncertain, and at the end of the innovation lifecycle, when contracts are signed, and the environment becomes predictable. Innovation is first placed in open networks, in which start-ups are essential, to which venture capital is allocated using business models. This is the ideation stage of the product lifecycle, when competitive advantage, the essence of value creation in both theory and the Siemens example, is created. Innovation matures, and Siemens closes contracts with customers about existing customer offerings. These contracts are managed as projects and funded with equity and debt. This is the stage when sufficient data exists to plan economic value added, the focus of Siemens' corporate governance.

An Integrated View of Strategic Management

2007 ◽  
Vol 18 (4) ◽  
pp. 275-302 ◽  
Author(s):  
Juan Pablo Stegmann
Keyword(s):  
Critical Thinking ◽  
Strategic Management ◽  
Market Power ◽  
Value Creation ◽  
Economic Value ◽  
Value Added ◽  
Integrative Model ◽  
Economic Value Added ◽  
Stock Value ◽  
Different Levels

Strategic management has produced an amazing number of theories and models in the last decades. However, so far it has not succeeded in producing a good integrative model that can synthesize all the existing models. In a previous paper I proposed such a model (from now on we will refer to it as the GEMK model, in relation to Growth-EVA-Market Power-Knowledge). It is based on the two drivers of stock value creation, Economic Value Added (EVA) and growth of capital, and proposes two new testable variables, market power and knowledge. This paper is the application of the GEMK model. It shows how most of existing strategic management models impact stock value creation. It produces a valuable simplification of the discipline, eliminates confrontations, shows that several different theories are complementary, provides a new powerful critical thinking, and shows that the different theories are contingent to these four variables. Most importantly, it shows that the different theories have different levels of impact on stock value creation.

scholarly journals ANALISIS KINERJA KEUANGAN PT. BANK MUAMALAT INDONESIA, Tbk. PERIODE 2009-2011 (PERBANDINGAN RASIO-RASIO KEUANGAN DAN ECONOMIC VALUE ADDED)

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Nalim Nalim ◽  
Fitriyah Fitriyah
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Financial Ratio ◽  
The Real ◽  
Ratio Approach ◽  
Performance Results ◽  
Banking Development

The performance of Bank Muamalat Indonesia (BMI) in 2011 increases its value continually for the stakeholders and contributes in national syariah banking development. Therefore, it is very important to analyze the financial performance in order to get the real description of the company. General financial analysis can be conducted by analyzing the financial ratio and Economic Value Added (EVA) approach. The result of the research shows that the best performance of BMI was in 2010 based on CAR and NPM values. According to ROA, ROE, and BOPO indicators, the best performance was in 2011. The EVA analysis shows that EVA value in the period of 2009-2011 was less than zero, which means that the best performance was not in the year. After getting the result of the financial ratio and EVA analysis, there is comparison between the interpretations of those financial performance results. The result of the comparison is significant. By using financial ratio approach, it shows that the bank has good remunerativeness. However, based on EVA analysis, the EVA value is less than zero, which means that BMI performance is not good. It can be concluded that the good performance based on financial ratio may become not good performance if we analyze it using EVA analysis.

scholarly journals Financial analysis of the South African life insurance sector - An empirical decomposition of economic value added

2016 ◽  
Vol 9 (3) ◽  
pp. 903-926
Author(s):  
Paul Alagidede ◽  
Takalani Mangenge
Keyword(s):  
Life Insurance ◽  
Asset Management ◽  
Financial Analysis ◽  
Insurance Industry ◽  
Economic Value ◽  
Value Added ◽  
Principal Component ◽  
Economic Value Added ◽  
Value Drivers ◽  
Insurance Sector

This article examines the determinants of economic value added (EVA) in insurance industries. It addresses the key components of EVA, the value drivers that are more important in managing economic value and the combination of these value drivers that best explain EVA as a group. The study covers the life insurance sector in South Africa, specifically focusing on the big five companies: Discovery Holdings, Liberty Holdings, MMI Holdings, Old Mutual plc, and Sanlam Ltd for the period 2004-2014. Variance and principal component analyses are used to identify the main drivers of EVA. Five main drivers were prominent, namely: underwriting, asset management, costs, opportunity cost and strategic investments. The implications of the results for best practice in the insurance industry are discussed.

scholarly journals Corporate social responsibility and value creation

2019 ◽  
Author(s):  
Sorush Niknamian
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Creation ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Pooled Data ◽  
Different Dimensions ◽  
Statistical Sample ◽  
Corporate Social

Various studies have studied the effect of corporate social responsibility on the performance of organizations. The recent studies in this field specifically have considered the measurement of corporate social responsibility. The present study is aimed to measure the different dimensions of corporate social responsibility and their impact on the performance of firms based on economic value-added and cash value added. Based on the extensive concept of corporate social responsibility, to evaluate each of economic, legal and ethical dimensions, corporate social responsibility based on Carrol theory has applied a new method to quantify this qualitative concept. The statistical sample consists of 104 firms during 2007 to 2016. To test the study hypotheses, multi-variate regression model and pooled data methods are used. It was found that there was a positive and significant relationship between economic, legal and ethical dimensions of corporate social responsibility and value-added. It means that economic value added and cash value added are affected via corporate social responsibility in different dimensions and are increased.

scholarly journals أثـر الأدوات الداخلية لحوكمة الشركة على رأس المال الـعـامـل وانعكاسهما علـى القيـمـة الاقتصـادية المضـافـة: دراســة تطبيقيـة علـى عينــة مـــن الشـركــات الصنــاعــيــة المـدرجــة في بورصــة عـمّــان لــلأوراق المـالـيـة

2013 ◽  
Vol 19 (73) ◽  
pp. 166
Author(s):  
ارشد فؤاد التميمي ◽  
احمد فارس القيسي
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Positive Relation ◽  
Working Capital ◽  
The Third ◽  
The Impact ◽  
Internal Instruments

Abstract Objective of this research focused on testing the impact of internal corporate governance instruments in the management of working capital and the reflection of each of them on the Firm performance. For this purpose, four main hypotheses was formulated, the first, pointed out its results to a significant effect for each of corporate major shareholders ownership and Board of Directors size on the net working capital and their association with a positive relation.  The second, explained a significant effect of net working capital on the economic value added, and their link inverse relationship, while the third, explored a significant effect for each of the corporate major shareholders ownership and Board of Directors size on the economic value added. The fourth, revealed a significant effect of the internal instruments for corporate governance on the economic value added in light of the different net working capital.

scholarly journals VALUE BASED MANAGEMENT AT SIEMENS – THE CLASSIC EXAMPLE REMAINS

2020 ◽  
Vol 10 (2) ◽  
pp. 32-50
Author(s):  
Diana Claudia Cozmiuc ◽  
◽  
Ioan Petrișor ◽  
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Large Body ◽  
Value Added ◽  
Theory And Practice ◽  
Economic Value Added ◽  
Value Drivers ◽  
Business Context ◽  
Value Based Management

The main objective of this paper is to check if value-based management in its classic design, 1980-2000, still works in the practice of one of its most prominent cases, Siemens. The paper also aims to describe value-based management in Siemens’ practice 1998-2020. This should enable a comparison between theory and practice the paper targets. The research methodology is case study: literature review, empirical data analysis, conclusions based on comparison. The case study is exploratory and descriptive. The article relies on secondary evidence about Siemens during 1998-2020, selects the evidence that pertains to value-based management and constructs the Siemens case example. The article is based on a large body of evidence, where the statements about value-based management are chosen based on their relationship to key words such as value, value drivers, value creation. The results may be the confirmation or denial of classic value-based management. The conclusion is that managing for Economic Value Added still works in the current business context. Other findings are Siemens’ driver tree during 1998-2020 in thorough description.

scholarly journals ANALISIS KELAYAKAN EKONOMIS CLOUD COMPUTING PADA LEMBAGA KEUANGAN MIKRO DI INDONESIA DENGAN METODE RANTI’S GENERIC IS/IT BUSINESS VALUE DAN ECONOMIC VALUE ADDED: STUDI KASUS PADA BANK PERKREDITAN RAKYAT DI JAKARTA

2012 ◽  
Vol 7 (2) ◽  
pp. 95
Author(s):  
Benny Ranti ◽  
Pamela Darmadji
Keyword(s):  
Cloud Computing ◽  
Financial Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
It Investment ◽  
It Business Value ◽  
Business Values ◽  
Return Of Investment ◽  
Sufficient Resource

Bank Perkreditan Rakyat (BPR) sebagai salah satu pemain terbesar dalam bisnis keuangan mikro di Indonesia telah meningkatkan penggunaan Sistem Informasi/Teknologi Informasi (SI/TI) untuk mendukung bisnis mereka. Namun, hanya sedikit dari mereka yang menyadari isu-isu seputar investasi TI. Ada kekhawatiran tentang tidak tersedianya sumber daya yang cukup untuk membeli, memelihara, dan mengamankan SI/TI mereka sendiri. Di sisi lain, investasi yang besar diperlukan dan akhirnya menjadi momok bagi BPR yang paling menerapkan SI/TI untuk mendukung pengembangan bisnis mereka. Penelitian ini menganalisis nilai ekonomi dari penerapan komputasi awan di BPR. Analisis dilakukan, pertama dengan mengidentifikasi dan mengukur relevansi manfaat SI/TI menggunakan Ranti’s IS/IT Generic Business Values dan kedua dengan menempatkan nilai-nilai yang diukur atau manfaat pada metode Economic Value Added (EVA), untuk melakukan analisis keuangan. Komputasi awan mampu memberikan solusi bagi masalah yang dihadapi oleh BPR seperti dapat dilihat dari nilai EVA positif. Oleh karena itu, komputasi awan merupakan pendekatan yang berharga bagi BPR untuk bergerak maju. Resiko investasi SI/TI dapat ditransfer ke penyedia komputasi awan, dengan kata lain, tidak ada waktu untuk berpikir tentang teknologi usang sebelum Return of Investment (ROI) tercapai. Bank Perkreditan Rakyat (BPR) as one of the biggest players in Indonesia’s microfinance business has increased their use of Information Systems/Information Technology (IS/IT) to support their business. However, only few of them are aware of issues around IT investment. There are concerns about the unavailability of sufficient resource to purchase, maintain, and secure their own IS/IT. On the other hand, a large investment is needed and it eventually becomes the scourge for most rural banks to apply IS/IT to support their business development. This research analyzes the economic value of implementing cloud computing in BPR. Analysis is done, firstly by identifying and quantifying the relevant IS/IT benefits using Ranti’s IS/IT Generic Business Values and, secondly by putting the quantified values or benefits into Economic Value Added (EVA) method to do the financial analysis. Cloud computing is able to provide solutions for problems faced by BPR as can be seen from the positive EVA value. Hence, the cloud computing is a valuable approach for BPR to move forward. IS/IT investment risk can be transferred to cloud computing providers, in other words, there is no time to think about outdated technology before Return of Investment (ROI) is achieved.

Financial Analysis and Value Creation

2021 ◽  
pp. 244-271
Author(s):  
Rosa Maria Morgado Galvão
Keyword(s):  
Value Creation ◽  
Global Economy ◽  
Financial Analysis ◽  
Economic Value ◽  
Value Added ◽  
Business Environment ◽  
Management Control ◽  
Control Instrument ◽  
Study Methodology ◽  
Using Data

The business environment is increasingly complex and demanding, and companies now face a pandemic situation with severe repercussions for the global economy. With this in mind, it is clear that the information provided by financial analysis is more than ever an essential instrument for management control, for decision making. Value creation is considered one of management's primary objectives; however, there is still no consensus on the superiority of value-based measures over traditional measures based on profit. The study intends to highlight the importance of complementing the financial analysis, based on traditional valuation measures, using value creation as an essential management control instrument. Thus, using the case study methodology, an analysis of historical performance will be performed using data from a company listed on Euronext Lisbon from 2014 to 2018. Economic Value Added (EVA®) was used to measure value creation.

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