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

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.

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

JURNAL HUKUM ISLAM ◽

10.28918/jhi.v1i1.547 ◽

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.

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VALUE BASED MANAGEMENT AT SIEMENS – THE CLASSIC EXAMPLE REMAINS

Business Excellence and Management ◽

10.24818/beman/2020.10.2-03 ◽

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.

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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

Jurnal Sistem Informasi ◽

10.21609/jsi.v7i2.299 ◽

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.

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Principal component analysis in determining representative financial ratios within non-life insurance sector in Serbia

Ekonomika preduzeca ◽

10.5937/ekopre2106306v ◽

2021 ◽

Vol 69 (6-7) ◽

pp. 306-317

Author(s):

Vladimir Vasić ◽

Jelena Kočović ◽

Marija Koprivica

Keyword(s):

Principal Component Analysis ◽

Life Insurance ◽

Financial Analysis ◽

Principal Component ◽

Component Analysis ◽

Capital Adequacy ◽

Financial Ratios ◽

Insurance Companies ◽

Insurance Sector ◽

And Performance

The paper deals with the application of principal component analysis in determining financial ratios that are representative within non-life insurance sector. Starting from many financial indicators found in the literature in the field of insurance, the purpose of the study is to identify a smaller set of ratios that are most relevant for assessing the financial position and performance of non-life insurance companies in Serbia with a minimum loss of information. On the basis of financial reports of nonlife and composite insurers in the period 2010-2019, we calculated 38 financial ratios, grouped into seven categories (capital adequacy, asset quality, reinsurance risk and performance, adequacy of technical reserves, profitability, liquidity and management soundness). Using parallel analysis and Velicer's minimum average partial test, we found that it is possible to explain 85% of variability of the initial set of ratios with six financial ratios. The obtained results can be used for the purposes of efficient financial analysis of individual insurance companies and the entire nonlife insurance sector in Serbia.

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

Mokslas - Lietuvos ateitis ◽

10.3846/mla.2016.923 ◽

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.

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Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Pada Nilai Perusahaan

Jurnal ULTIMA Accounting ◽

10.31937/akuntansi.v3i2.432 ◽

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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KOMPARASI KINERJA KEUANGAN MELALUI PENDEKATAN ECONOMIC VALUE ADDED (EVA) PADA PERUSAHAAN TRANSPORTASI DI JAKARTA

Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT ◽

10.36226/jrmb.v3is1.140 ◽

2018 ◽

Vol 3 ◽

pp. 223-232

Author(s):

Dwi Urip Wardoyo

Keyword(s):

Financial Performance ◽

Service Industry ◽

Economic Value ◽

Value Added ◽

Added Value ◽

Economic Value Added ◽

Test Analysis ◽

Transportation Service ◽

Income Statement

This study aims to compare financial performance through profitability generated by two market participants in the witness transportation service industry in Jakarta, namely PT. BB compared to PT. ETU, this assessment is measured not limited to the profit generated but more than that by measuring financial added value through the concept of Eonomic Value Added produced by the two companies. The population in this study were all taxi transportation service companies in Jakarta. The sampling method selected two taxi companies that have the largest market share in DKI Jakarta, namely BB Taxi and ETU Taxi. The test analysis used in this study is ratio analysis through profit calculation and economic added value from the annual income statement. This study shows that there are (a) determination of the ratio of profit levels, (b) Determination of the comparison of economic value added of the two companies. Keywords : Financial performance, Economic Value Added (EVA)

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