Abstract
Assessment of company performance can be done using traditional and modern techniques. Each test carried out has the advantages and disadvantages of the order if applied to companies listed on major stock exchanges. This study aims to determine the traditional and modern analysis of stock performance indicators on the New York Stock Exchange. The company index used was the Dow Jones index. Company performance was measured using two indicators, namely modern performance indicators reflected in Economic Value Added (EVA) and traditional performance indicators reflected in Return on Assets (ROA), Return on Equity (ROE), Earning Per Share (EPS), and Dividend Per Share (DPS). This research was conducted employing purposive sampling on 29 companies indexed by Dow Jones during the 2015-2018 period. The data analysis techniques used were descriptive statistics, classical assumption test, and multiple regression analysis. The results of hypothesis testing in this study show that partially modern performance indicator, namely Economic Value Added (EVA), has an insignificant and negative effect on Stock Return. Meanwhile, traditional performance indicators, namely Return on Assets (ROA), Return on Equity (ROE), Earning Per Share (EPS), and Dividend Per Share (DPS) have a significant and positive effect on Stock Return. The results of simultaneous hypothesis testing show that Economic Value Added (EVA), Return on Assets (ROA), Return on Equity (ROE), Earning Per Share (EPS), and Dividend Per Share (DPS) have a significant and positive effect on Stock Return.Keywords: Economic Value Added (EVA), Return on Asset (ROA), Return on Equity (ROE), Earning Per Share (EPS), and Dividend Per Share (DPS), Stock Return.
Highlights
A new normal condition applied due to Covid-19 pandemic is underway in this world
Company performance was measured using two indicators, namely modern performance indicators reflected in Economic Value Added (EVA) and traditional performance indicators reflected in Return on Assets (ROA), Return on Equity (ROE), Earning Per Share (EPS), and Dividend Per Share (DPS)
The independent variable in this study was the modern performance indicator described by EVA, as well as the traditional performance indicator described by ROA, ROE, EPS, and DPS
Summary
A new normal condition applied due to Covid-19 pandemic is underway in this world. The business world is evolving by adapting to new habits that adhere to health protocols. Traditional and modern, before the pandemic and current company performance indicators are needed because novice investors who are unfamiliar with the investment world are confused. The measurement of company performance using modern indicators before the pandemic uses the EVA (Economics Value Added) approach. Modern performance indicators with EVA can create its own value for companies, especially for entrepreneurs who are active in trading both on the capital market and in the market in general (Utama, 1997). Company performance measurement with traditional and modern indicators before the pandemic is expected to be able to provide a combination of information to assess the level of company investment returns, especially when viewed from Stock Return. Based on the explanation above, the researcher is interested in testing the effect of ROA, ROE, EPS, DPS (traditional indicator) and EVA (modern indicator) on company Stock Return on the DJIA on the NYSE
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