scholarly journals Application of EVA concept in business "SBB" limited liability company Belgrade

2020 ◽  
Vol 8 (2) ◽  
pp. 70-77
Author(s):  
Dragana Bešlić-Obradović ◽  
Ivana Bešlić-Rupić
Keyword(s):  
Economic Value ◽  
Limited Liability ◽  
Value Added ◽  
Business Environment ◽  
Company Performance ◽  
Economic Value Added ◽  
Limited Liability Company ◽  
Total Cost ◽  
New Concepts ◽  
A Company

The contemporary business environment has imposed the need to continuously find and define new concepts and tools that support the strategic management of a company. Among them, Economic Value Added - EVA is considered as the essential principle for the evaluation of company performance in terms of shareholder return. EVA is taxable profit less the total cost of capital (borrowed and owned). The contribution of the EVA concept is reflected by looking at economic rather than accounting profits. This concept was adopted by many companies in Serbia, among which is also "SBB" limited liability company - Belgrade.

Међузависност додате економске вредности, нето садашње вредности и тржишне вредности предузећа // Interdependence of Economic Value Added, Net Present Value and Market Value of a Company

2018 ◽  
Vol 13 (22) ◽  
pp. 53
Author(s):  
Милорад Иванишевић
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Company Performance ◽  
Economic Value Added ◽  
Present Value ◽  
Market Value Added ◽  
One Year ◽  
A Company

Резиме: У чланку се најпре разматра додата економска вредност као метод за мерење перформанси предузећа у временским интервалима од годину дана. Затим се расправља о додатој тржишној вредности као разлици између тржишне вредности предузећа и вредности инвестираног капитала. После тога се објашњава међузависност додате економске вредности и додате тржишне вредности. На крају се показује да постоји повезаност нето садашње вредности као метода за оцену рентабилности инвестиција и тржишне вредности предузећа.Summary: Economic value added as a method for company performance measurement for time periods of one year is firstly analyzed in the paper. After that we discuss market value added as a difference between company market value and value of invested capital. Then the interdependence between economic value added and market value added is explained. Finally, we point out that there is relationship between net present value as a method for investment rentability evaluation and company market value.

How to Evaluate the Economic Value Added of Innovative Interface Technologies in a Booming Cyber Commerce Environment

2011 ◽  
Vol 467-469 ◽  
pp. 1006-1011
Author(s):  
Ming Yuan Hsieh ◽  
Chung Hsing Huang ◽  
Wen Ming Wu
Keyword(s):  
Factor Analysis ◽  
Customer Service ◽  
Economic Value ◽  
Value Added ◽  
Business Environment ◽  
Economic Value Added ◽  
Social Community ◽  
Priority Vector ◽  
Network Process ◽  
Four Levels

Beginning in the 21st century, e-business enterprises need to take vigorous tactics in facing greater challenges in a booming cyber commerce era. In today’s e-business environment, innovative interface technologies change with each passing day, customers’ (users’) satisfaction are more and more discerning, and market demands can fluctuate unpredictably. While facing constant changes in the lower-profit and high customer-service cyber commerce environment, it is important to know how to break through the current Information Technology (IT) industrial situation, maintain the enterprises’ owned advantage and continuously make a profit under a booming transition. In this research, nineteen sub-criteria are categorized into five factors (criteria) by the measurement of factor analysis. Three basic types of innovative business websites (portals, cyber commerce and social community) in an e-business environment are then evaluated by nineteen assessable criteria of five characteristics of innovation interface technology through the use of the Analytical Network Process (ANP) approach. The specific feature of the ANP model is to establish a pairwise comparative matrix and furthermore, to calculate the priority vector weights (eigenvector) of each assessable characteristic, criteria and sub-criteria. The factor analysis can utilize more measure matrix to benefit the deviation of ANP approach due to less data from expert’s opinions. Additionally, in the content, the analytical hierarchical relations are definitely expressed in four levels among each characteristic of innovative interface technology (IIT), criterion and sub-criteria. Moreover, based on the empirical analysis, the enterprises are able to choose the best potential business website with highest economic value added (EVA) through this research in order to maximize financial profits and benefits from an innovative perspective. Finally, some suggestions for managers and researchers are inductively formed to further determine the best development of innovative interface technologies in a thriving cyber commerce environment.

Financial Behaviour in a Mandatory Conversion Process: Empirical Evidence from Colombia

2020 ◽  
pp. 097215092096400
Author(s):  
Juan David González-Ruiz ◽  
Maria Isabel Acosta-García ◽  
Ramón Villa-García
Keyword(s):  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
Convertible Bonds ◽  
Economic Value Added ◽  
Operating Profit ◽  
Financing Costs ◽  
Financial Behaviour ◽  
A Company

Convertible bonds are attractive because they offer alternatives for both issuers and investors. Therefore, several companies have used this financial mechanism to raise capital. Although several studies have been published on this topic, mandatory convertible bonds (MCBs), which are subsets of convertible bonds, and their effect on economic value added (EVA) have not been explored deeply. This study analyses what happens to the EVA before, during and after the issuance when investors are involved as shareholders of a company issuing MCBs. A Colombian company is used as a case study. The results reveal that one of the main reasons behind the change in the EVA is not only the weighted average cost of capital or the invested capital but also the operating profit. The net operating profit after tax (NOPAT) depends on operating profit. Therefore, to generate a positive EVA, the NOPAT margin needs to be higher than the margin of financing costs.

scholarly journals ECONOMIC VALUE ADDED (EVA) SEBAGAI PENGUKURAN KINERJA KEUANGAN PADA INDUSTRI TELEKOMUNIKASI SUATU ANALISIS EMPIRIK

2018 ◽  
Vol 1 (1) ◽  
pp. 101-119
Author(s):  
Trinik Susmonowati
Keyword(s):  
Financial Performance ◽  
Stock Price ◽  
Cost Of Capital ◽  
Economic Value ◽  
Value Added ◽  
Financial Statements ◽  
Capital Cost ◽  
Economic Value Added ◽  
The Impact ◽  
A Company

The company's performance has always been measured based on financial ratios for a certain period. Measurement based on financial ratios is very dependent on the accounting treatment used in the preparation of corporate financial statements. The purpose of a company that is only oriented to the achievement of profits as big as when it is no longer relevant today. Therefore the responsibility of the company not only to the shareholders, but to all stakeholders. Performance appraisal of a company is very important that the assessment process must be in line with the effectiveness and efficiency in achieving competitive advantage in the business world. Since the last ten years has developed a new approach in assessing the financial performance of companies known as Economic Value Added (EVA). EVA model comes from the concept of capital cost (cost of capital), which is the risk faced by the company in making investments. The concept of Economic Value Added (EVA) as an alternative to performance measurement based on the value (EVA) is an approach in assessing the performance of the company by paying fair attention to the expectations of funders or investors. EVA is the profit left behind after deducting the capital cost (cost of capital) invested to generate the profit. Positive EVA values can be interpreted that the company's management has created value (creating value). Conversely, if the value of negative EVA means that there is no economic value added into the company. The goal to be achieved by the authors in this study is To determine the financial performance of Telecommunications Company in review of Economic Value Edded (EVA). And To know Which Telecommunication Company that provides better economic value.This research used qualitative analysis. The qualitative analysis method is used to interpret and analyze the result of EVA calculation, that is to measure the added value of the company by calculating all capital cost, either the capital contribution from the shareholder or from the loan, or the risk faced by the company in making the investment. To measure the company's performance required financial report data in the form of income statement and balance sheet, JCI, stock price and SBI rate data. Data Collection Procedure is the data of financial statements of companies from the telecommunications industry listed on the Indonesia Stock Exchange in the period 2005-2009, obtained from www.idx.co.id. Monthly monthly stock price index (IHSG) monthly from 2005-2009, interest rate of 12 month time deposit from 2005-2009 and stock price data used since 2005.The results show that only PT Telekomunikasi Indonesia Tbk alone can generate positive EVA, while PT Indosat Tbk and PT Bakrie Telecom Tbk generate negative EVA. Negative EVA values are caused by several factors, among others: because of the significant increase in fuel prices, followed by inflation and rising interest rates affecting people's purchasing power, rising capital costs and operational costs of both companies, the impact of the 2008 global financial crisis that affected on declining stock value and the impact of tariff war between telecommunication companies where telephone tariffs are lower and the decline in long distance call rates affects the telecommunication company's operating revenues.

scholarly journals Pengaruh Earning Per Share dan Economic Value Added terhadap Return Saham pada Perusahaan yang Terdaftar di Jakarta Islamic Index

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Choirul Imroatin ◽  
Purweni Widhianningrum
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Stock Returns ◽  
Quantitative Research ◽  
Economic Value ◽  
Value Added ◽  
Sampling Technique ◽  
Economic Value Added ◽  
A Company

This study aimed to analyze the influence Earning Per Share and Economic Value Added on stock returns. This study is a quantitative research. The population in this study is a company registered in the group of Jakarta Islamic Index period in 2011, 2012, 2013, and 2014. The sampling technique used purposive sampling, so the final number of samples acquired 11 companies. The data analysis used is multiple linear regression. The results proved that Earning Per Share and Economic Value Added have a significant effect on stock returns in Jakarta Islamic Index period in 2011, 2012, 2013, and 2014. Keywords: Earning Per Share, Economic Value Added, Return, Jakarta Islamic Index.

scholarly journals PENILAIAN KINERJA KEUANGAN PT. BANK MUAMALAT INDONESIA, TBK DENGAN METODE ECONOMIC VALUE ADDED

2016 ◽  
Vol 7 (1) ◽  
pp. 15
Author(s):  
Fathia Ahya Nur Iman ◽  
Arry Widodo
Keyword(s):  
Research Method ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Capital Costs ◽  
Operating Profit ◽  
Quantitative Descriptive ◽  
Time Specific ◽  
A Company ◽  
Descriptive Method

The purpose of this study to determine the financial performance with the use of the EVA method to the assessment of the performance of PT Bank Mualamat Indonesia Tbk in the period 2010 - 2014. The research method used is quantitative descriptive method using Economic Value Added (EVA), which is an analytical method for evaluating the performance a company to take measurements of the profits (value) economically produced by the company during the period (period of time) specific. The results show the value of Bank Muamalat EVA is negative, meaning that Bank Muamalat in the year 20102014 can not create value-added enterprise or net operating profit after taxes (NOPAT) produced by the company is not able to finance or cover all capital costs or expenses incurred. In 2014 the value of EVA Bank Muamalat increasing, although still negative.

scholarly journals Gender and Ethnic Diversity, and Economic Value Added: Evidence from Government-Linked Companies

2021 ◽  
Vol 6 (2) ◽  
pp. 113
Author(s):  
Michele Merara ◽  
Jennifer Tunga Janang ◽  
Imbarine Bujang
Keyword(s):  
Firm Size ◽  
Ethnic Diversity ◽  
Economic Value ◽  
Value Added ◽  
Secondary Data ◽  
Business Environment ◽  
Economic Value Added ◽  
Board Diversity ◽  
Units Of Analysis ◽  
Code Of Corporate Governance

Board diversity was further emphasized in the revised Malaysian Code of Corporate Governance (MCCG) 2017, as this can allow for more board effectiveness in constructive debates and better decisions. With this recommended deliverable, the code believes that companies should perform and will be more equipped to face the ever-changing business environment and challenges. This study examines the influence of boardroom diversity on corporate performance using Government-Linked Companies (GLCs) in Malaysia as units of analysis. The study used secondary data of publicly listed GLCs in Malaysia for seven years (2012 to 2018). We used gender and ethnicity to proxy for boardroom diversity while economic value added (EVA) represents the company’s performance. We also used panel data multiple regression to analyze the data. After controlling for firm size and firm age, the empirical results revealed that board ethnicity is negatively and significantly related to firms’ economic performance. Board gender, however, provides insignificant results. We also find the firm size to be significant and positively related to EVA. This preliminary result on board composition requires further research on how Malaysian GLCs can address the MCCG’s recommended governance compliance, particularly on the monitoring roles of the board on firm performance.

ANALISIS PENGARUH KINERJA PERUSAHAAN TERHADAP RETURN SAHAM LQ 45

2013 ◽  
Author(s):  
Rika Desiyanti
Keyword(s):  
Return On Investment ◽  
Stock Return ◽  
Economic Value ◽  
Value Added ◽  
Company Performance ◽  
Economic Value Added ◽  
Research Show

The objective of this research is to examine empirically the influence return on Investment  and economic value added to stock return. This research using LQ 45 company as sample. By using regression, the result of research show there is not company performance in explaining stock return. There are not return on Investment  and economic value added in explaining  stock return by partial.

Intellectual capital and value: testing new IC measures in Russia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danila Ovechkin ◽  
Natalia Boldyreva ◽  
Vladimir Davydenko
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Business Environment ◽  
Dynamic Panel Data ◽  
Residual Income ◽  
Economic Value Added ◽  
Content Type

PurposeThe aim of this paper is to propose extended intellectual capital (IC) indicators. The study shows that the essence of IC in the context of value is residual income, its growth rate and growth rate of equity taken together. It allows creating IC measures (modified residual income and economic value added of equity) that contain these components. The study investigates the relationship between IC and market value for Russian public firms.Design/methodology/approachThe authors propose modified residual income and modified economic value added of equity as IC metrics. This study tests a relationship between market value and IC to investigate suggested metrics. Static and dynamic panel data models are used. 25 companies from the MOEX Russia Index were included in the study. The study covers the period from 2014 to 2018.FindingsThe findings show a strong positive relationship between market value and IC. The results confirm that extended IC measures have a stronger connection to market value.Practical implicationsFirstly, these results benefit managers. They can use proposed extended IC measures as targets for the company when planning business strategy and generating business environment. Secondly, suggested IC measures can help shareholders and investors achieve their long-term goal – wealth maximization.Originality/valueThe value of this article is the development of IC theory and valuation. The proposed measures differ in the way that they consider the growth rates – the main determinants of value along with efficiency.

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