Determining the impact of Capital Structure on Economic Value Added with reference to select Pharmaceutical companies listed in National Stock Exchange

Presently financial experts developed the new concept as a value-based measure of performance in the creation of shareholder value. Market value for shareholders are among the most important goals of firms and owners The purpose of this study is to obtain empirical evidence of Economic Value Added (EVA) affects shareholder value by the method of Market Value Added (MVA) The research using non-financial companies listed on the Stock Exchange from 2013-2017. The result is support that the Economic Value Added (EVA) positive effect on shareholder value or in other words, the higher EVA is the higher shareholder value. The larger the company greater shareholder value and Leverage negative effect on shareholder value as measured using the method of MVA.

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ANALISIS PENGARUH ECONOMIC VALUE ADDED TERHADAP MARKET VALUE ADDED PADA 20 EMITEN TERAKTIF DI BURSA EFEK JAKARTA PERIODE 2001 2005

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v2i2.4430 ◽

2019 ◽

Vol 2 (2) ◽

pp. 97

Author(s):

Wibowo Wibowo ◽

Koes A Windyarti

Keyword(s):

Stock Exchange ◽

Economic Value ◽

Operating Cost ◽

Value Added ◽

Secondary Data ◽

Market Value ◽

Economic Value Added ◽

Independent Variable ◽

Market Value Added ◽

The Impact

Generally, the purposes of company are for increasing the profit and creating shareholders wealth. Economic Value Added is a system which suitable to measure economic profitability of the company, that state the wealthy only can create if the company can fulfill all of the operating cost and cost of capital. The objectives of composing this thesis to get the empirical illustration about Economic Value Added (EVA), Market Value Added (MVA), and to know the impact Economic Value Added toward Market Value Added on 20 companies listed in Jakarta Stock Exchange (JSX) which perform the most active stock period 2001 until 2005. These data researches get from secondary data with purposive random sampling method, such as Jakarta Stock Exchange (JSX) Statistics and Indonesian Capital Market Directory (ICMD). In this thesis, the research design used is correlation descriptive method which EVA treated as independent variable and MVA as dependent variable. The conclusion is that EVA has increased every year as MVA during 2001-2003, but in 2004- 2005 the MVA has decreased, and moreover. EVA was positively influencing MVA but least significant on 20 companies that have most active stock listed in Jakarta Stock Exchange (JSX).

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PENGARUH ECONOMIC VALUE ADDED (EVA) DAN RASIO PROFITABILITAS TERHADAP HARGA SAHAM

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v2i2.900 ◽

2018 ◽

Vol 2 (2) ◽

pp. 290-303

Author(s):

Venni Agnatia ◽

Diah Amalia

Keyword(s):

Coal Mining ◽

Stock Price ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Economic Value ◽

Value Added ◽

Economic Value Added ◽

Return On Equity ◽

Total Data ◽

Profitability Ratios

The purpose of this research is to analyze the effect of Economic Value Added (EVA) and profitability ratios partially and simultaneously to the coal mining company’s stock price. The profitability ratios used in this research as independent variable are Return on Asset (ROA), Return on Equity (ROE), Return on Investment (ROI) and Net Profit Margin (NPM) although the stock price as the dependent variable. The samples used were 14 companies from 25 coal mining companies listed in Indonesia Stock Exchange during the period 2011-2017 so total data processed is 98 samples. This research used linear regression analysis with Eviews version 9. The result indicated that partially the variable ROA and ROI has significant positive effect on stock price. EVA, ROE and NPM does not affect the stock price. All variables simultaneously affect to the stock price. Keyword: EVA, ROA, ROE, ROI, NPM, Stock Price

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

SHS Web of Conferences ◽

10.1051/shsconf/202112903014 ◽

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.

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Financial Ratios, Economic Value Added and Market Reaction: A Quantitative Study on Indonesia Stock Exchange

JURNAL MANAJEMEN BISNIS ◽

10.33096/jmb.v7i2.573 ◽

2020 ◽

Vol 7 (2) ◽

pp. 82-91

Author(s):

Indrawan Azis ◽

Dara Ayu Nianty ◽

Andi Marlinah

Keyword(s):

Market Reaction ◽

Stock Exchange ◽

Economic Value ◽

Value Added ◽

Secondary Data ◽

Partial Least Square ◽

Least Square ◽

Economic Value Added ◽

Manufacturing Companies ◽

Market Reactions

Reflecting on the phenomenon of stock market movements on the Indonesia Stock Exchange, this study was appointed to examine the effect of the effect of liquidity, solvency, and Economic Value Added (EVA) on market reactions in manufacturing companies listed on the IDX. The research method uses a quantitative approach, and types are categorized in explanatory research. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange in the period 2017-2019. Determination of the sample to be tested in this study using a purposive sampling method and obtained 36 companies. Secondary data were obtained from the Capital Market Information Center (PIPM) the Indonesia Stock Exchange (IDX). The analytical method is Partial Least Square (PLS) with the assistant of SmartPLS 3.0 software. The results of the study showed that all exogenous variables positively and significantly influenced endogenous variable (EVA and Market Reaction). Research findings enrich previous studies on understanding market reactions and their impact on the development of corporate financial strategies in Indonesia.

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

WSEAS TRANSACTIONS ON ENVIRONMENT AND DEVELOPMENT ◽

10.37394/232015.2021.17.5 ◽

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.

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

Asian Social Science ◽

10.5539/ass.v13n11p142 ◽

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…

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