Abstract
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.
Highlights
Value-based measures have been received a lot of attention during the last two decades, value-based economic value added (EVA) is paid close attention by several accounting, business and nance researchers, corporate professionals, and consultant firms and they accept the limitations of traditional measures of performance (Bhasin, 2013)
The purpose of this study is to investigate the impact of profitability on market Market Value Added (MVA)
The purpose of this study was to obtain empirical evidence regarding the effect of Economic Value Added (EVA) on shareholder value, through the two methods is the method of MVA
Summary
Value-based measures have been received a lot of attention during the last two decades, value-based economic value added (EVA) is paid close attention by several accounting, business and nance researchers, corporate professionals, and consultant firms and they accept the limitations of traditional measures of performance (Bhasin, 2013). Their findings suggest that traditional measures are not proper guidance to make a strategic decision (Laksana et al, 2017). We can say that traditional measures still play an important role as instruments for assessing the economic and accounting performance of firms. Traditional measures only provide information from judgments on past performance (Pinto and Santos, 2011). The purpose of this study is to investigate the impact of profitability on market MVA
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