scholarly journals What is the Business of Business? Time for Fundamental Re-Thinking

2021 ◽  
Author(s):  
Frederick Bird
Keyword(s):  
Human Resources ◽  
Economic Value ◽  
Value Added ◽  
Well Being ◽  
Financial Model ◽  
Legal Reforms ◽  
Governance Practices ◽  
Stakeholder Model ◽  
Business Enterprises ◽  
Purpose Of Business

This chapter challenges the taken-for-granted assumptions regarding the purpose of business expressed in the financial or shareholder model of business enterprises. The chapter points to the adverse consequences of operating in keeping with this model on the natural environment, loss of employment opportunities, and aggravated inequalities in wealth. In addition, the chapter maintains that the financial model misrepresents the character of businesses and the nature of productivity, identifying both in relation to increased financial returns. Enterprises are better described as the nexus of value creating interactions with diverse stakeholders. Productivity is better understood as the effective value-added use of natural and human resources, always taking into account the costs accrued in the process. The chapter makes the case for the stakeholder model of business enterprises. It notes that metrics are being developed to measure the productivity of businesses in relation to the diverse ways businesses add economic value to society through their interaction with their several stakeholders. The chapter then calls for reforms of governance practices that will better enhance the well-being of businesses as a whole rather than prioritizing the interest of one particular stakeholder, namely the shareholders. The chapter ends with a discussion of legal reforms, a few of which have already been instituted in some countries, to incentivize these reforms.

scholarly journals Mengukur Kontribusi Human Capital terhadap Tujuan Perusahaan

2010 ◽  
Vol 1 (2) ◽  
pp. 388
Author(s):  
Brata Wibawa Djojo
Keyword(s):  
Human Capital ◽  
Human Resources ◽  
Economic Value ◽  
Value Added ◽  
Insurance Company ◽  
Economic Value Added ◽  
General Insurance ◽  
Factor Ii ◽  
Capital Value ◽  
Capital Return

Human capital is a valuable asset of any company, especially for competent human resources and contributes both to the company. The performance evaluation given to employees annually can be defined and standardized by the company. However, the question is how big the contribution of human resources to sales and profit contribution is. Case studies take data from one branch of a general insurance company in Indonesia, Jakarta branch. Measurement is done by taking samples of data from 2007, 2008, and 2009. The study measures the risk of several components: (i) Human Capital Revenue Factor, (ii) Human Economic Value Added, (iii) Human Capital Cost Factor, (iv) Human Capital Value Added, and (v) Human Capital Return on Investment. Results of research can provide guidelines for the management, especially for management of JLI in view of Human Capital contribution to corporate objectives, namely in terms of staffing and agency. 

scholarly journals Disclosure of Social-Economic Value in the Social Enterprise. Stimuli from an Italian Multiple Case Study

2020 ◽  
Vol 13 (6) ◽  
pp. 53
Author(s):  
Antonietta Cosentino
Keyword(s):  
Economic System ◽  
Economic Value ◽  
Multiple Case Study ◽  
Value Added ◽  
Well Being ◽  
Social Enterprises ◽  
Social Value ◽  
The Social ◽  
Multiple Case

The growing interest in the financial, social and environmental sustainability of all organizations as a whole, as well as the growing sentiment for their responsibility towards the community, lead organizations to face the challenge of evaluating and communicating their non-financial performance through the social accounting. The issue assumes a peculiar meaning within social enterprises (SEs) aimed at pursuing the general interest. In these organizations, the disclosure of the value created for both internal and social stakeholder raises to rank of survival condition because the development, reputation and credibility of the SEs are closely linked to the institution's ability to reach and communicate externally the social value created. This work aims to highlight the peculiar resources of the SEs and demonstrate that, in most cases, they allow SEs to achieve financial sustainability. Social and economic value will be assessed and the share of income that cannot be distributed, regardless of the relevant regulatory provisions, will be emphasized. To achieve these goals, a multiple case study is used to measure the value added distributed to internal and external stakeholders by adapting Mook model to SEs. The results show that volunteering and donations contribute not only to the social value generated by SEs but to their economic sustainability as well, being considered as the engine of development of the economic system as a whole. This paper contributes to the literature by focusing on the contribution of liberalities and volunteering to consolidate the financial structure of the SE and to development of the economic system as a whole.

scholarly journals Looking for the right balance between human and economic costs during COVID-19 outbreak

2021 ◽  
Vol 33 (1) ◽  
Author(s):  
Chiara Seghieri ◽  
Micaela La Regina ◽  
Michela Tanzini ◽  
Riccardo Tartaglia
Keyword(s):  
Economic Impact ◽  
Economic Value ◽  
Value Added ◽  
Well Being ◽  
Italian Regions ◽  
Value Loss ◽  
Northern Regions ◽  
Heated Debate ◽  
Human Costs ◽  
The Right

Abstract Since the beginning of Coronavirus 2019 (COVID-19) disease outbreak, there has been a heated debate about public health measures, as they can presumably reduce human costs in the short term but can negatively impact economies and well-being over a longer period. Materials and methods To study the relationship between health and economic impact of COVID-19, we conducted a secondary research on Italian regions, combining official data (mortality due to COVID-19 and contractions in value added of production for a month of lockdown). Then, we added the tertiles of the number of people tested for COVID-19 and those of health aids to evaluate the correspondence with the outcome measures. Results Five regions out of 20, the most industrialized northern regions, which were affected both earlier and more severely by the outbreak, registered both mortality and economic value loss above the overall medians. The southern regions, which were affected later and less severely, had low mortality and less economic impact. Conclusions Our analysis shows that considering health and economic outcomes in the assessment of response to pandemics offers a bigger picture perspective of the outbreak and could allow policymakers and health managers to choose systemic, ‘personalized’ strategies, in case of a feared second epidemic wave.

CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI DARI PENGARUH ECONOMIC VALUE ADDED TERHADAP SHAREHOLDER VALUE

2013 ◽  
Author(s):  
Idamiharti Idamiharti
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Positive Influence ◽  
Economic Value Added ◽  
Test Results ◽  
Governance Practices ◽  
Financial Company

This research is conducted to obtain empirical evidence that (1) there is an influence of Economic Value Added on shareholder value, (2) the influence of corporate governance practices as a moderating variable of Economic Value Added and shareholder value relationship. The sample used in this research is non financial company that listed in Indonesia Stock Exchange (ISE) period 2003 - 2007. A regression analysis with interaction is use to test the hypothesis. Hypothetical test results show that Economic Value Added have a positive influence on shareholder value. Besides that, test results also show that corporate governance is a moderating variable to the influence of Economic Value Added on shareholder value. In other word, we can say that corporate governance practices can strengthen the influence of Economic Value Added on shareholder value. 

scholarly journals A financial model to determine the distortions in Economic Value Added (EVA) caused by inflation

2001 ◽  
Vol 4 (2) ◽  
pp. 286-305
Author(s):  
J. U. De Villiers
Keyword(s):  
Steady State ◽  
Economic Value ◽  
Value Added ◽  
Algebraic Model ◽  
Rate Of Return ◽  
Economic Value Added ◽  
Internal Rate Of Return ◽  
Financial Model ◽  
Economic Profit ◽  
Current Value

This paper presents an algebraic model to study the extent to which inflation distorts Economic Value Added (EVA). The model consists of a theoretical firm in steady state, consisting entirely of projects with the same known internal rate of return. The EVA this firm reports is then calculated, and compared to the true economic profit calculated from the known return of the firm. The model shows that both conventional EVA and EVA based on the current value of assets are distorted by inflation. The distortion in the latter is more systematic, and this could form the basis of an adjusted EVA calculation to provide an estimate actual profitability.

Analisis Kinerja Keuangan Perusahaan dengan Menggunakan Pendekatan Economic Value Added (EVA) dan Market Value Added (MVA) (Studi Kasus pada PT Astra International, Tbk. Periode Tahun 20082012)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdul Hamid
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Stock Price ◽  
Economic Value ◽  
Composite Index ◽  
Value Added ◽  
Secondary Data ◽  
Study Approach ◽  
Market Value Added ◽  
The Interest Rate

This study is a qualitative study using a case study approach to the PT. Astra International, Tbk. The object of this research is PT. Astra International, Tbk. PT. Astra International, Tbk is a company engaged in six business sectors, namely: automotive,financial services, heavy equipment, mining and energy, agribusiness, information technology, infrastructure and logistics. Researchers chose PT. Astra International, Tbk as research objects due in the year 2012, PT. Astra International, Tbk managed to rank first in the list of 100 Best Companies to Go Public by the 2011 financial performance of Fortune magazines Indonesia. The data used in this research is secondary data, the financial statements. Astra International, Tbk 20082012. Other secondary data used is the interest rate of Bank Indonesia Certificates (SBI), the Jakarta Composite Index (JCI), and thecompanys stock price began the year 20082012. This study aims to determine the companys financial performance by the use of EVA and MVA approach, therefore the data analysis technique used is the EVA and MVA. Based on the value EVA of the year 2008 2012, PT. Astra International, Tbk has good financial performance that managed to meet the expectations of the company and the investors. Based on the value of MVA during the years 20082012, PT. Astra International, Tbk managed to create wealth and prosperity for companies and investors. It concluded that financial performance. AstraInternational, Tbk for five years was satisfactory.

Enterprise Performance Analysis of the Selected Service Sector by Applying Modern Methods with an Emphasis on the Creation and Application of the Modified Creditworthy Model (MCWM)

2018 ◽  
Vol 9 (17) ◽  
Author(s):  
Erika Onuferová ◽  
Veronika Čabinová
Keyword(s):  
Service Sector ◽  
Prediction Models ◽  
Economic Value ◽  
Value Added ◽  
Financial Indicators ◽  
Tourism Sector ◽  
Future Success ◽  
Financial Growth ◽  
Net Assets ◽  
Third Dimension

The aim of presented paper was to create and subsequently apply the Modified 3D Creditworthy Model (MCWM) of performance reflecting sectoral characteristics and financial specificities of the selected sample of Slovak tour operators over the years 2013 – 2017. The intention of this research study was to implement the key financial indicators and appropriate prediction models into both dimensions of the traditional 2D Creditworthy Model of performance and to supplement its third dimension applying the selected modern assessment methods – the Economic Value Added and the Return On Net Assets as we consider them to be one of the most important indicators of future success and company's financial growth. This modification will help to better identify the current financial position of tour operators and more accurately identify causes that hinder the development of financial performance of the selected sample of enterprises. However, after adjusting the upper and lower quartile averages of a particular industry, this methodology is applicable in the wider context of enterprises, not only those operating in the tourism sector.

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

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

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)

Emissions Responsibility and Relative Importance of the Productive Sectors in Turkey: 2002-2011

2014 ◽  
Author(s):  
Celal Taşdoğan ◽  
Bilgen Taşdoğan
Keyword(s):  
Air Pollutants ◽  
Economic Value ◽  
Value Added ◽  
High Growth ◽  
Air Pollutant ◽  
Sustainable Growth ◽  
Environmental Damage ◽  
Relative Importance ◽  
Input Output ◽  
Key Sectors

Turkey has realized high growth rates during the period of 2002-2011, except in 2008 and 2009 years. It is thought that the rapidly growing in the country may cause a lot of environmental damage, especially air pollution problems. In other words, the productive sectors have produced two outputs which are economic value added and air pollutants. This study used input output matrixes are to find out the strategically important sectors as it is known key sectors and weak sectors caused the environmental effects in the country. For this purpose, it has been tried to investigate air pollutant quantities which caused by the production process of the sectors in the period of 2002-2011 and performed the input-output tables for Turkey constructed in the World Input Output Database (WIOD) Project. These input-output tables include the emission satellite accounts, which are CO2 emissions and other air pollutants, respectively N2O, CH4, N2O, NOx, SOx, CO, NMVOC and NH3, disaggregated for the 34 sectors. It is expected that the outcomes of the study may contribute to sustainable growth debates and environmental policy implementations in Turkey.

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