Financial Performance Measurement Using the Value Added Method to Determine the Effect on Stock Prices

Abstract

One of the Indonesian government's policies since 2015 has been to increase development through its developed infrastructure, by increasing its budget for this sector from year to year. However, companies listed in the engineering and construction subsector on the Indonesian Stock Exchange, both state-owned enterprises and private companies, experienced losses so it could be said that their financial performance was poor. This study intends to evaluate the financial performance engineering and construction sub-sector companies using the Economic Value Added (EVA), Market Value Added (MVA), Refined Economic Value Added (REVA), Financial Value Added (FVA), and Shareholder Value Added (SVA) in 2018 – 2023 and determine their influence on stock prices. This type of research is quantitative descriptive research using E-Views 12 with a population 26 companies and a sample size 16 companies. Based on the results the calculations and analysis, it stated that EVA, MVA, REVA, FVA, SVA and stock prices engineering and construction companies, both state-owned and private, during the 2018 - 2023 period obtained an average of negative amounts. The research results show that the financial performance variables using value added have an influence on stock prices with influence of 74.57% while the rest is influenced by other variables not examined in this research. Partially only MVA and SVA have an influence on stock prices because based on the probability test using E-Views 12 it appears that only MVA and SVA produce results below the alpha. The suggestion for this research is that company management should pay attention to the company's financial performance, especially the MVA and SVA variables and further researcher can make comparative research between all value-added variables.