scholarly journals The Influence of Economic Value Added and Return on Assets on Created Shareholders Value: A Comparative Study in Jordanian Public Industrial Firms

2017 ◽  
Vol 9 (4) ◽  
pp. 63 ◽  
Author(s):  
Sliman S. Alsoboa
Keyword(s):  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Assets ◽  
Industrial Firms ◽  
Value Added Model ◽  
Market Value Added ◽  
And Performance ◽  
The Relationship ◽  
Financial Measure

This study has two main objectives. The first one is to address the relationship between Economic Value Added (EVA) and Created Shareholders Value (CSV) in Jordanian public industrial firms (JPIF), comparing to the Return on Assets (ROA) over the period 2011-2015. The second objective is to address the possible superiority of EVA to ROA by explaining the changes in CSV for JPIF. In this study, CSV is measured using two models; Fernandez model and market value added model. Multiple and simple regressions were used in the study. These analyses have shown, generally, that the superiority of EVA in predicting and evaluating the CSV could be put into a conclusive and positive light compared to ROA. However, the results suggested that one financial measure cannot be enough to measure neither CSV nor firms’ performance. Therefore, this study highly recommends that JPIF use a combination of different measure in assessing and evaluating their value and performance, especially modern indicators.

scholarly journals Economic Value Added and Profitability on Created Shareholders Value in Manufacturing Sectors

2020 ◽  
Vol 76 ◽  
pp. 01051
Author(s):  
Sautma Ronni Basana ◽  
Ricky Julio ◽  
Christina Soehono
Keyword(s):  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Manufacturing Companies ◽  
Panel Data Regression ◽  
Value Added Model ◽  
Market Value Added ◽  
Year 2013

This study aimed to investigate the effect of economic value added and profitability on created shareholders value Fernandez model and market value added model in manufacturing companies listed on the Indonesia Stock Exchange period year 2013 to 2018. The samples are fifty Manufacturing companies enterprises listed on the IDX period year 2013 to 2018. Methods of data analysis were performed using panel data regression with pooled OLS model. The results of this analysis showed profitability has a significant effect on created shareholders value Fernandez model and market value-added model in manufacturing companies listed on the IDX period 2013 to 2018.

Investigation the Impact of Financial performance indicators on Dividend Policy

2016 ◽  
Vol 6 (1) ◽  
pp. 02
Author(s):  
Ali Maghool
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Return On Assets ◽  
Market Value Added

AbstractThis paper aims to study the effect of Financial performance indicators on the dividend policy among companies listed on the Tehran Stock Exchange. The statistical sample includes 91 companies between 2008 and 2012. Dividend policy was considered a dependent variable, independent variables were economic value added, market value added, return on assets, and market to book value ratio, and control variables included company size and systematic risk. In the theoretical principles part, data were gathered through library method, and in the part of hypothesis tests, data were collected from financial statements and the Tehran Stock Exchange Website. Data were then examined in a multiple regression analysis and a correlation test. Results showed that Financial performance indicators indicators are direct and significant effects on dividend policy.Keywords: Dividend Policy, Financial performance indicators, Economic Value Added, Market Value Added, Return on Assets

scholarly journals The Relationship between Economic Value Added (EVA®) and Market Value Added (MVA) With Reported Earnings: An Empirical Research Of 40 Listed Companies In Indonesia Stock Exchange For The Year 2004-2007

2008 ◽  
Vol 1 (1) ◽  
pp. 60-72
Author(s):  
Pratiwi Putri Wibowo ◽  
Ruben Garcia Berasategui
Keyword(s):  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Listed Companies ◽  
Economic Value Added ◽  
Market Value Added ◽  
Reported Earnings ◽  
Relationship Of ◽  
The Relationship

This study was made to examine the relationship between Economic Value Added (EVA®) and Market Value Added (MVA) with the reported earnings. Thus, the purpose is to gain better understanding in the use of EVA and MVA in relation to the reported earnings in certain purposes from different regression models. With the sample of 40 Indonesian listed companies in Indonesia Stock Exchange from year 2004 to 2007, the hypothesis testing is used to find the relationships among variables. The author use formula for calculating EVA and MVA to be use in four models of regression analysis against reported earnings. This study found evidence in the relationships between EVA and MVA with reported earnings, and the highest correlation among the models is relationship within the same year period, which can be used for evaluation purposes. Only the relationship of the EVA in the previous year and reported earnings changes is proved not significant. Still, MVA is more significant in explaining its relationship with reported earnings rather than EVA. The author concludes that in general, Indonesian listed companies still produces negative EVA. On the other hand, while the EVA and MVA are proved to have correlation with reported earnings, the result for EVA is lower than MVA. Therefore, there is still not enough evidence that EVA can be used to explain the reported earnings effectively other than MVA.

scholarly journals The Relationship Between Economic Value Added, Market Value Added And Return On Cost Of Capital In Measuring Corporate Performance

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Suwinto Johan
Keyword(s):  
Cost Of Capital ◽  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
Market Value ◽  
Company Performance ◽  
Economic Value Added ◽  
Investment Performance ◽  
Market Value Added ◽  
The Relationship

The aim of the paper is to assess the relationship between Economic Value Added (EVA), Market Value Added (MVA) and the traditional financial ratio in measuring investment performance by a holding company. The sample is PT. Astra International, Tbk in Indonesia. Astra is one of the largest conglomerate in Indonesia with diversify business from automotive, financial service, agro, infrastructure and technology. All of the investments are consolidated under single company, which is PT. Astra International, Tbk. The research assessed the financial performance from 2009 – 2016. The research will use Economic Value Added (EVA), Market Value Added (MVA) and Return on Weighted Average Cost of Capital (ROC) as financial measurement tools. The research found that there was a direct relationship between ROC and EVA. Negative EVA and negative ROC did not reflect the MVA on company performance. Negative EVA and ROC, could have positive Market Value Added (MVA). However negative MVA value will also reflect on negative EVA and ROC.

scholarly journals The Relationship between the Market Value Added of SMEs Listed on AIM Italia and Internal Measures of Value Creation The Role of Corporate Strategic Planning

2017 ◽  
Vol 9 (1) ◽  
pp. 121
Author(s):  
Andrea Quintiliani
Keyword(s):  
Panel Data ◽  
Strategic Planning ◽  
Statistical Tests ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Capital Allocation ◽  
Economic Value Added ◽  
Market Value Added ◽  
The Relationship

Objectives - In saying that measurement of financial performance plays an important role in the capital allocation choices, the aim of this study is to test the relationships between Market Value Added (MVA), stockholders value measures and presence of formal strategic plan.Methodology - The study is among descriptive and correlational researches and using panel data methodology on sample of SMEs listed in AIM Italia. The time under study was from 2010 to 2015. In addition, the hypotheses of the research have been tested using Rahavard Novin software for data collection and SPSS 20.0 for data analysis.Findings - The results indicate that Refined Economic Value Added (REVA) has more correlation with Market Value Added (MVA) than Economic Value Added (EVA); in addition, the results obtained using panel data methodology shows that the use of strategic plans influences the relationship between value performance measures and MVA.Research limits - Data used for this study need to be subjected to more statistical tests in order to establish a more robust validity and reliability. It is necessary to acquire further strengthened data and assume a variety of conditional situations. It is expected that subsequent studies can use larger samples and diversified by sector, a broader geographic base and a multi-faceted analyses.Practical implications - This work offer necessary evidences in order to help capital market participants to make rational decision in investment process.Originality of the study - The originality of this study is the correlation between MVA, financial measures and use of strategic planning for value management.

scholarly journals The Impact of Economic Value Added, Market Value Added and Traditional Accounting Measures on Shareholders’ Value: Evidence from Jordanian Commercial Banks

2018 ◽  
Vol 10 (10) ◽  
pp. 40 ◽  
Author(s):  
Hanan Ali Al-Awawdeh ◽  
Sa’ad Abdul Kareem Al-Sakini
Keyword(s):  
Commercial Banks ◽  
Economic Value ◽  
Accounting Standards ◽  
Value Added ◽  
Market Value ◽  
Rate Of Return ◽  
Economic Value Added ◽  
Return On Assets ◽  
Market Value Added ◽  
The Impact

The purpose of this is study is to test the impact of economic value added, market value added and traditional accounting measures on the shareholders’ value in the Jordanian commercial banks, based on a sample of 13 banks during the period 2010-2016. The study used the shareholders’ value as a dependent variable, while five independent variables were used, including Economic Value Added (EVA), Market value added (MVA), and three traditional accounting measures, namely; the rate of return on assets (ROA), rate of return on equity (ROE), and the Earning per share (EPS). The study found, by using the common regression analysis, that the rate of return on assets (ROA) and the economic value added (EVA) had a positive and statistically significant effect on maximizing the shareholders’ value, while the rest of the traditional accounting standards or the market added value had no any significant impact on shareholder’ value. The study concluded that traditional accounting standards are still constitute an important input for assessing shares, and maximizing the shareholders’ value along with modern performance assessment measures, especially economic value added. The study recommended that the performance assessment of banks should be based on two criteria: the rate of return on assets and the economic 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

scholarly journals ANALISIS PENGARUH EVA, ROA DAN ROE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK JAKARTA TAHUN 2006-2008

2014 ◽  
Vol 14 (02) ◽  
Author(s):  
Wikan Budi Utami
Keyword(s):  
Capital Market ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Assets ◽  
Return On Equity ◽  
Purposive Sampling

Tujuan dalam penelitian ini adalah untuk mengetahui pengaruh EVA, ROA dan ROE terhadap return pemegang saham.Sampel yang diambil dalam penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Jakarta (BEJ) yang tercantum dalam Indonesian Capital Market Directory dan internet dengan situs www.jsx.co.id sejak tahun 2006 sampai dengan 2008. Sampel penelitian ditentukan berdasarkan purposive sampling. Dalam penelitian ini uji asumsi klasik yang digunakan adalah: uji normalitas, uji Autokorelasi, uji Multikolinearitas, uji Heterokedastisitas, Uji Regresi (Uji f dan t).Pengujian hipotesis yang digunakan adalah uji f, uji t dan uji R2. Hasil uji F diperoleh nilai Fhitung sebesar 1,226 dengan tingkat signifikansi 0,317. Karena nilai signifikansi F lebih besar dari 0,05 maka disimpulkan tidak ada pengaruh simultan antara variabel Economic Value Added (EVA), Return on Assets (ROA), Return on Equity (ROE) terhadap Return Saham.Hasil uji t diperoleh variabel EVA memiliki tingkat signifikansi lebih dari 0,05 yaitu sebesar 0,100. Dengan tingkat signifikansi 0,100 yang lebih besar dari 0,05 disimpulkan bahwa secara parsial Economic Value Added (EVA) tidak berpengaruh terhadap Return Saham perusahaan. Variabel ROA memiliki tingkat signifikansi lebih besar dari 0,05 yaitu sebesar 0,789. Dengan tingkat signifikansi 0,789 lebih besar dari 0,05 disimpulkan bahwa secara parsial Return on Asset tidak berpengaruh terhadap Return Saham perusahaan. Variabel ROE memiliki tingkat signifikansi lebih dari 0,05 yaitu sebesar 0,689. Dengan tingkat signifikansi sebesar 0,689 yang lebih besar dari 0,05 disimpulkan bahwa secara parsial Return on Equity (ROE) tidak berpengaruh terhadap Return Saham perusahaanHasil uji koefisien determinasi diperoleh nilai R2 sebesar 0,109 atau 10,9%. Hal ini menunjukan bahwa 10,9% dari nilai variabel dependen yaitu Return Saham dapat dijelaskan oleh Economic Value Added (EVA), Return on Assets (ROA) dan Return on Equity (ROE) sedangkan sisa nilai variabel dependen yaitu  sebesar 89,1% tidak dapat dijelaskan oleh persamaan regresi atau dipengaruhi oleh faktor lain yang tidak termasuk dalam model analisis.Hasil penelitian ini diharapkan dapat memberi masukan bagi investor dalam melakukan invetasi saham dengan tidak hanya melihat kondisi perusahaan melalui rasio keuangan, khususnya melalui rasio EVA, ROA dan ROE tapi dengan rasio lain sebagai penentu investasi.Kata kunci: Economic Value Added (EVA), Return on Assets (ROA), Return on Equity (ROE) dan Return Saham

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.

scholarly journals Economic value added model upon conditions of banking company

2008 ◽  
Vol 56 (3) ◽  
pp. 85-98
Author(s):  
Vlasta Kašparovská
Keyword(s):  
Standard Model ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Basic Principles ◽  
Banking Activity ◽  
Value Added Model ◽  
The Standard Model ◽  
Banking Business

The content of this article is the application of the economic value added model (EVA) upon the conditions of a banking company. Due to the character of banking business, which is in a different structure of financial sheet, it is not possible to use the standard model EVA for this banking company. The base of this article is the outlined of basic principles of the EVA mode in a non-banking company. Basic specified banking activity dissimilarities are analysed and a directed methodology adjustment of a model such as this, so that it is possible to use it for a banking company.

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