scholarly journals The Impact of Economic Value Added & Return on Investment on the Changes in Stock Market’s Value (Analytical Study: ASE: 2006-2015)

2017 ◽  
Vol 12 (10) ◽  
pp. 132 ◽  
Author(s):  
Mohammad Abdel Mohsen Al-Afeef
Keyword(s):  
Interest Rates ◽  
Return On Investment ◽  
Analytical Study ◽  
Economic Value ◽  
Value Added ◽  
Coefficient Of Determination ◽  
Systemic Risks ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
Better Than

This study aims to determine the effect of EVA and ROI and which is better able to explain the change in Stock market’s value in the companies listed in (ASE) (2006-2015), the researcher addresses a random sample consisting of (46) Company, and uses regression model, which connects the dependent and independent variables.The results of the study shows that the return on investment (ROI) is better than (EVA) to interpret the changes in Stock market’s value, where the coefficient of determination (R2) for the ROI is (22.5%), while the R2 for EVA Only 1.3%.This study also recommends the need to look for additional factors that would explain the changes in stock market's value such as: the degree of leverage, systemic risks, and macroeconomic indicators such as: (interest rates and inflation).

scholarly journals The Impact of the General Level of Prices and Operating Profit on Economic Value Added (EVA) (Analytical Study: ASE 2001 - 2015)

2017 ◽  
Vol 13 (11) ◽  
pp. 142
Author(s):  
Ebraheem Al Taha'at ◽  
Mohammad Abdel Mohsen Al-Afeef ◽  
Saqer Al Tahat ◽  
Muhannad Akram Ahmad
Keyword(s):  
Analytical Study ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Economic Value ◽  
Value Added ◽  
General Level ◽  
Sales Volume ◽  
Economic Value Added ◽  
Operating Profit ◽  
The Impact

This study aims to show the importance of the economic value added as one of the most modern to measure the financial performance for firms, then to know the effect of the general prices level and earnings before interest and taxes on EVA in the companies listed in (ASE) (2006-2015), the researcher addresses a random sample consisting of (46) Company, and uses regression model, which connects the dependent and independent variables.The results of the study shows that There is a significant impact for the general prices level and the earnings before interest and taxes on the economic value added, and also shows that 22% of the changes in the economic value added are due to general prices level and earnings before interest and taxes, and 78% of the changes are due to other factors.This study also recommends the need to manage of operating expenses because of the positive impact of operating profit on EVA value, and to take inflation into account when calculating the value of EVA, and also searching for other factors that could affect the value of EVA such as sales volume, cost of capital, and the growth in the total assets of the company's financial leverage, etc…

scholarly journals Bank crediting to the sector of non-financial corporations in Ukraine

2019 ◽  
Vol 14 (3) ◽  
pp. 64-75 ◽  
Author(s):  
Yuliia Verheliuk ◽  
Yuliia Koverninska ◽  
Vladimir Korneev ◽  
Alexey Kononets
Keyword(s):  
Interest Rates ◽  
Systematic Approach ◽  
Economic Value ◽  
Value Added ◽  
Bank Lending ◽  
Bank Loans ◽  
Economic Value Added ◽  
Economic Returns ◽  
Economic Activities ◽  
Macroeconomic Indicators

The importance of studying the bank crediting (lending) to non-financial corporations in Ukraine is due to the recent increase in borrowing costs and a low credit supply from banks. This article defines certain parameters, which could help to allocate the limited credit recourses to meet current macroeconomic challenges. The main purpose of the article is to discuss and substantiate the choice of these parameters. The study is focused on the systematic approach and statistical methods to achieve the research goals.Quantitative parameters of bank lending to non-financial corporations were analyzed through the prism of macroeconomic indicators. In particular, the analysis was conducted on the following parameters of bank lending to non-financial corporations: share of bank loans to non-financial corporations in GDP, volume of loans by type of economic activity, sectoral shares of non-financial corporations in creating gross economic value added, interest rates on loans to non-financial corporations, etc.It is defined that the share of bank lending to non-financial corporations in GDP is currently low and gradually decreasing. The analysis of the volume of lending by types of economic activities, by the size of borrowers and the respective sectoral shares of non-financial corporations in creation of gross value added showed disproportionate distribution of credit resources by economic returns. The calculation and analysis of the localization and concentration coefficients allowed to identify current problems in crediting of Ukrainian businesses. The interest rates on loans to non-financial corporations remain high, which often makes bank credits inaccessible for them, especially considering the low level of profitability of Ukrainian enterprises.

تأثير الاستثمار الاجنبي المباشر في القيمة السوقية للشركة (دراسة تطبيقية في شركة بترو جانيا الصينية في عقود التراخيص النفطية للجولة الاولى والثانية في الحقول النفطية في العراق للمدة من 2017-2010)

2020 ◽  
Vol 2020 (66) ◽  
pp. 65-85
Author(s):  
هيثم عبد النبي موسى ◽  
أ .د حيدر نعمة غالي الفريجي
Keyword(s):  
Foreign Direct Investment ◽  
Stock Prices ◽  
Return On Investment ◽  
Direct Investment ◽  
Inverse Correlation ◽  
Market Value ◽  
Political Stability ◽  
Coefficient Of Determination ◽  
Independent Variable ◽  
The Impact

This study dealt with the effect of foreign direct investment on the market value of the company during the period of time (2010-2017). This issue was studied through a sample of oil fields in southern Iraq in which the company operates within the first and second licensing contracts rounds and according to the circumstances and variables of the investment environment as it is. Although this investment often achieves high returns, it is also characterized by a high degree of risk and for the purpose of evaluating the impact of foreign direct investment on the market value of the company's stock prices for the period (2010-2017). The statistical scale (T-TEST) was used to indicate the significance of the correlation hypotheses. Between the return on investment as the independent variable and the market value as the dependent variable, and the use of the coefficient of determination (R2) that measures the effect of the independent variable (foreign direct investment) on the dependent variable (market value) and the F-Test to demonstrate acceptance or rejection of the hypothesis of the return on investing in the market value of the oil company, and if the company achieves a high return in foreign direct investment, the market value of it will be affected positively. The study was based on a set of goals, including determining the attractiveness of Iraq to foreign investments, especially the oil sector, and the study reached a number of conclusions, the most prominent of which is the existence of a strong inverse correlation between the return on investment and the market value of the company. And the existence of a slight impact of the return on investment on the market value of the company, and the study reached a number of recommendations, the most important of which is activating the investment climate through political stability and the clarity and stability of laws and legislation regulating investment, which is one of the most important factors affecting the investment decision.

scholarly journals Impact of Intellectual Capital Management and Human Capital Circulation on Business Practice at Macro- and Micro Level

2017 ◽  
Vol 9 (5) ◽  
pp. 6-16 ◽  
Author(s):  
Iryna Oleynikova ◽  
Zhanna Balabaniuk
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Financial Analysis ◽  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
General Acceptance ◽  
Managerial Implications ◽  
Standard Practices ◽  
The Impact

Nowadays the main potential for growth comes from the ability to innovate and succeed with breakthrough ideas. However, despite growing importance of the subject matter, there are still no standard practices that would perform such a measurement and employ tendencies of human capital circulation. Various attempts have been made over recent years, but none have achieved general acceptance among experts in the business field. Although there is no universally accepted theory, each has its own strengths and weaknesses in the deriving approximate value of intellectual capital for various companies. In this work, we looked over some theories that have been suggested to estimate intellectual capital and analyzed data from Ukrainian IT companies in order to prove how important measurement of intellectual capital and human capital circulation trends to allow for much better representation of an organization’s competitive position. Additionally, the impact of intellectual capital on various Key Performance Indicators, such as Economic Value Added and Weighted Average Cost of Capital, was examined with supporting financial analysis performed. The paper concludes with an overview of methodological and managerial implications of the research, theoretical and practical limitations and possible improvements, and considerations for further research in the field of study.

scholarly journals Sensitivity analysis of Economic Value Added as a dominant indicator of concept of economic profit

2021 ◽  
Vol 129 ◽  
pp. 03014
Author(s):  
Dusan Karpac ◽  
Viera Bartosova
Keyword(s):  
Sensitivity Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Financial Status ◽  
Economic Profit ◽  
Methods Of Synthesis ◽  
The Difference ◽  
Individual Variables ◽  
The Impact

Research background: The modern goal of enterprises, value creation, is achieved through the concept of economic profit. Profit, as part of profit or loss, is one of the most important flows, pointing to how efficiently corporate capital is used in an entity (Coatney & Poliak, 2020). The article deals with the difference between accounting and economic profit, the selected form of economic profit - the EVA indicator. The economic value added (EVA) indicator is one of the best-known modern indicators of a company's performance (Siekelova et al., 2019). It shows whether the given entity increases its value or only earns for its economic survival. The benefit of this indicator is the valuation of equity and taking into account the risk. It is difficult to express the economic profit itself, therefore the article also addresses the issue of its calculation (Shah et al., 2016). The company needs to know its financial status and the direction it is heading, so we decided to calculate a selected form of economic profit. Purpose of the article: The company needs to know its financial status and the direction it is heading, so we decided to calculate a selected form of economic profit. When expressing the value of the economic value added indicator, it is also important to know the items and components of the calculation that have the strongest meaning and effect on the possible amount of the indicator. Given this, we decided to use a sensitivity analysis, which points to the effect of individual variables that participate in the construction of the EVA calculation. Methods: In this work, the methods of induction, deduction, and comparison were used to obtain a true picture of the subject issue. Methods of synthesis and analysis of the researched issues were also used. Findings & Value added: In the paper there is pointed out the intensity of the impact of individual variables that entered into the calculation of the economic value added indicator as a dominant indicator of concept of economic profit.

scholarly journals How the global economy reflected the year of the pandemic

2021 ◽  
Vol 129 ◽  
pp. 01014
Author(s):  
Vladislav Kaputa ◽  
Frederik Kvočák ◽  
Miroslava Triznová ◽  
Andrej Tomić ◽  
Hana Maťová
Keyword(s):  
Global Economy ◽  
Value Added ◽  
Point Of View ◽  
Environmental Aspects ◽  
Data Comparison ◽  
The Social ◽  
Macroeconomic Indicators ◽  
The Individual ◽  
Reduced Mobility ◽  
The Impact

Research background: The coronavirus pandemic in 2020 had a significant impact on all aspects of life, from the point of view of the individual by forcing social isolation, moving work and study to the home, enormous pressure on the social and health system, but also by forcing closures of services and direct contact with customers. These, as well as other factors, have also had an impact on the performance of economies around the world. Purpose of the article: The paper aims to evaluate the development of the world's major economies in terms of macroeconomic indicators and foreign trade in the pandemic period and previous periods. The social and environmental aspects of the impact of the pandemic on selected economies are also reflected. Methods: Analysis of the main macroeconomic data, comparison and synthesis of findings. Findings & Value added: The interdependence of economies and interconnectedness of markets on transport routes associated with reduced mobility, forced isolation of people and death of economic activity had a significant impact on all the observed indicators, where a significant decline in GDP could be observed in all countries except China. This country was the only one that managed to keep GDP growth in positive numbers. Unemployment development was not equal in the observed economies due to different labour market environment. On the contrary, the environment has benefited in some way.

scholarly journals Liquidity and the Performance of the Nigerian Manufacturing Firms: an Economic Value-added Approach

2021 ◽  
Vol 17 ◽  
pp. 47-55
Author(s):  
Olusegun Osho ◽  
Alexander Ehimare Omankhanlen ◽  
Mojisola Fasanmi ◽  
Victoria Akinjare
Keyword(s):  
Manufacturing Industry ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Economic Sectors ◽  
Manufacturing Firm ◽  
Development Indicators ◽  
And Performance ◽  
The Impact

Considering the possibility of finding a gap and a room for improvement, so much have been written about liquidity and performance. Notwithstanding, the emphasis has been on profitability as a yardstick for performance and little has been done on other areas of performance measurement. The emphasis has also been more on various economic sectors with the exception of the manufacturing industry. This paper intends to look at the impact, if any, of liquidity provision and availability on Nigeria’s manufacturing firm’s performance from the perspective of Economic Value Added (EVA). Economic value-adding is beyond just profitability or liquidity. The firm's value to the stakeholders, its sustainability and long-term values are defined. The study would apply liquidity theories, profitability and the economic value-added theories as it applies to a manufacturing firm in a developing economy like Nigeria. On its methodology, the article data is obtained from the World Bank’s World Development Indicators-WDI and then a regression analysis will be run on the data using the SPSS software and then an analysis of the results of the regression. The last section of the article would conclude and make recommendations from the study outcome and the empirical analysis with respect to the theories.

scholarly journals THE EFFECT OF TRANSFERING ISRAEL CAPITAL CITY TO JERUSALEM TOWARD INDONESIA MACRO ECONOMY

2020 ◽  
Vol 3 (2) ◽  
pp. 260-282
Author(s):  
Liliek Nur Sulistiyowati
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Crude Oil ◽  
Interest Rates ◽  
Oil Prices ◽  
Donald Trump ◽  
State Budget ◽  
Crude Oil Prices ◽  
Macroeconomic Indicators ◽  
The Impact

United States President Donald Trump has just issued a controversial policy by giving Jerusalem recognition as the capital of Israel. This controversial policy triggered a strong reaction from a number of countries, especially Islamic countries including Indonesia. Indonesia through President Jokowidodo strongly condemned the policy of moving the Israeli capital to Jerusalem because it would disrupt political and security stability in the Middle East region. In the midst of the political impact caused by President Donald Trump's policies also affected the global economy. The world stock exchanges reacted immediately with the existence of these policies, one of which was the fall of the stock market index in Japan and South Korea due to investor concerns. The impact of the policies implemented by President Donald Trump also affected the Indonesian economy. This policy will affect the financial markets and capital markets in Indonesia. Trump's policy triggered an increase in the US $ exchange rate against the currencies of other countries including the Indonesian currency. Some of the negative effects on the Indonesian economy were the increase in world crude oil prices. Indonesia is currently no longer an oil exporting country, so that with the increase in world crude oil prices it will provide a fiscal burden in the State Budget (APBN). Fuel subsidies in the state budget will increase along with the increase in world crude oil prices that occur. In addition to the impact on the rupiah exchange rate against the US $, Donald Trump's policy also affects the inflation rate and the SBI interest rate. Through 2018, Bank Indonesia has raised the SBI interest rate by 150 basis points (bps) or 1.5%. The BI Governor explained that one reason for changing the benchmark interest rate was US monetary policy. The determination of high SBI interest rates also had an effect on reducing inflationary pressures. This study aims to look at the influence of President Donald Trump's policies regarding the transfer of the Israeli capital to Jerusalem against Indonesia's macroeconomic indicators. Indonesia's macroeconomic indicators are seen from 3 variables, such as the inflation rate, SBI interest rates and the rupiah exchange rate against US $ Key words :  Donald Trump, inflation, SBI interest rates, exchange rates / exchange rates  

scholarly journals FEATURES OF INTEREST-BEARING MONETARY POLICY INSTRUMENTS OF THE CZECH NATIONAL BANK

2020 ◽  
pp. 127-133
Author(s):  
A. V. Berdyshev ◽  
N. S. Bobyr
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
Policy Instruments ◽  
Macroeconomic Policies ◽  
Exact Test ◽  
Macroeconomic Indicators ◽  
National Bank ◽  
The Impact

The features of the economic development of the Czech Republic after the global financial crisis, the role of the Czech National Bank in the formation of macroeconomic policies, as well as the peculiarities of monetary regulation in the study period have been defined in the article. The main goal of the paper is to assess the impact of interest rates used by the Czech National Bank in the process of monetary regulation on the dynamics of the main macroeconomic indicators, which is considered as one of the necessary conditions for the effectiveness of the inflation targeting regime. By the results of the correlation analysis and Fisher’s exact test, it has been determined that the Czech National Bank could affect the main macroeconomic indicators based on the percentage of monetary policy instruments used.

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