Market Value Added Research Articles

Does managerial market timing with stock repurchases exist in stock market?: Evidence from Thailand

This study examines the presence of managerial market timing with stock repurchases in the Stock Exchange of Thailand (SET) from 2008 to 2017. We find that managerial market timing with stock repurchases does not exist in an emerging market (namely, Thailand) supporting the theory of pseudo market timing, as the probability of stock repurchases is not related to undervalued stocks. However, there are other motivations for conducting stock repurchases rather than managerial market timing including the distribution of excessive cash flow due to high operating income and no good future investment opportunity, and the change of capital structure because of underleverage. Our findings are supportive to the free cash flow, capital market allocation, and trade-off theories. In addition, we also find that timing firms tend to suffer from the deterioration of Tobin q ratio, market value added (MVA) and economic value added (EVA), and they do not rebalance their capital structure after this event.

The Influence Of Economic Value Added (EVA), Return On Assets (ROA) On Stock Prices With Market Value Added (MVA) As A Moderating Variable

The aim of this research is to ascertain the influence of Economic Value Added (EVA), Return on Assets (ROA) on stock prices with Market Value Added (MVA) as a moderating variable in retail sector companies on the Indonesian Stock Exchange for the 2017-2022 period. The research methodology used is a quantitative method. The research population and sample consisted of 30 data. In this research, the data collection techniques used in this research were documentation and library research techniques. Data were analyzed using panel data regression, Microsoft Excel 2010 and Eviews Version 12 were used to process the data. Findings: The results of the t test (partial) on the Economic Value Added (EVA) variable (X1) obtained a calculated t value of 0.434167 < t table, namely 2.048407142 and a sig value. 0.6676 > 0.05, then H1 is rejected. The results of the t test (partial) on the Return on Assets (ROA) variable obtained a calculated t value of 12.77570 > t table, namely 2.048407142 and a sig value. 0.0000 < 0.05, then H2 is accepted. The results of the t test (partial) on the moderating variable Market Value Added (MVA) are able to moderate Economic Value Added (EVA) and obtain a sig level value. is 1.288399 > 0.05 and the sig.prob value is 0.2094 < 0.05, then H3 is accepted. The results of the t test (partial) on the Market Value Added (MVA) moderating variable are able to moderate the Return on Assets (ROA) to obtain a sig level value. is -0.916624 < 0.05 and the sig.prob value is 0.3681 > 0.05, then H4 is rejected.

Effect of EVA, CFROI, MVA and CVA Methods on Shareholders Value Maximization and Financial Performance Estimation: An Empirical Study

With the globalization of markets, competition and performance pressure have accelerated. Investors rightfully expect a reasonable return on the capital they make available to others. Since companies often achieve their growth through capital obtained from new shareholders, the pressure on company profitability increases significantly. The capital market rewards companies' good performance and also punishes their bad performance. At this point, Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), Cash Value Added (CVA) and Market Value Added (MVA), which ensure value maximization, have become increasingly important problems. For this reason, company profitability and growth potential are important. Within the scope of this study, the importance of EVA, CFROI, CVA and MVA indicators and their comparison with traditional methods are discussed in the introduction part. Studies on these indicators that embody value maximization are examined through a literature review. In the methodology section, the data of 11 companies active in the healthcare sector listed on Borsa Istanbul are analyzed through regression and correlation analyzes on the basis of the 2015-2021 period, and the effects of these indicators on stock returns. As a result, when MVA, CVA, CFROI and EVA are positive, economic profit is achieved and shareholder value is expected to increase.

Pengaruh Economic Value Added , Market Value Added, dan Kebijakan Dividen terhadap Nilai Perusahan

Purpose: The current study aims to envestigate the influence of Economic Value Added (EVA), Market Value Added (MVA), and dividend policy on the value of enterprises classified as LQ45 that were publicly listed on the Indonesia Stock Exchange from 2020 to 2022. The study encompasses a dependent variable, Firm Value, alongside independent variables comprising Economic Value Added (EVA), Market Value Added (MVA), and dividend policy. Methodology: Quantitative research is what this study is all about. Information gathered from stock prices and yearly reports utilizing documentation methodologies. Twenty businesses were chosen the Purposive Sampling technique. Multiple Linear Regression in SPSS Version 27 was employed to examine in data. Results: Findings demonstrated that EVA has no influence on company value, but MVA has a large positive effect on firm value, and dividend policy has a massive positive effect on firm value. Meanwhile, the EVA, MVA, and Dividend Policy have a major beneficial influence on the firm's worth. Limitations: One of its drawbacks is the limited three-year analysis time; perhaps, future researchers will be able to employ a longer study period. Contribution: The study's findings may help businesses and investors weigh EVA, MVA and dividend policy factors when making choices.

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

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.

Pengaruh Ukuran Kinerja Keuangan Tradisional dan Value Based Management terhadap Market Value Added pada Perusahaan Badan Usaha Milik Negara di Bursa Efek Indonesia

This study examines the impact of traditional financial performance measures and Value-Based Management on Market Value Added (MVA) in State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange from 2018 to 2022. The sampling technique employed was purposive sampling, resulting in the selection of 19 companies based on predetermined criteria. Secondary data was obtained from the Indonesia Stock Exchange website, and panel data regression analysis was used for data analysis. The results indicate that ROA and EVA positively and significantly influence MVA. In contrast, ROE, DPS, EBITDA, and CFROI do not significantly affect MVA. Notably, EPS demonstrates a negative impact on MVA, suggesting that higher earnings per share may not correlate with increased market value.

PENGARUH ECONOMIC VALUE ADDED (EVA), MARKET VALUE ADDED (MVA), ARUS KAS OPERASI DAN EARNING PER SHARE (EPS) TERHADAP RETURN SAHAM

This study aims to assess the impact of Economic Value Added (EVA), Market Value Added (MVA), Operating Cash Flow, and Earning Per Share (EPS) on Stock Returns for companies listed in the LQ-45 Index on the Indonesia Stock Exchange from 2020 to 2023. The population includes all 67 companies in the LQ-45 Index during this period. A purposive sampling method was used to select 23 companies. Data was collected through documentation studies and analyzed using descriptive statistics, classical assumption tests, and multiple linear regression. The findings indicate that: Economic Value Added (EVA) does not affect Stock Returns, Market Value Added (MVA) has no impact on Stock Returns, Operating Cash Flow influences Stock Returns, and Earning Per Share (EPS) does not affect Stock Returns

Profitability measures and their impact on interpreting changes in market value added (MVA): Evidence from pharmaceutical and chemical companies

Investors and company managements often rely on traditional performance evaluation indicators, such as return on equity, return on assets, and other financial ratios, to explain changes in a company’s market value added (MVA). However, the effectiveness of these traditional measures in explaining market value fluctuations remains uncertain. This research aims to investigate the impact of various profitability measures, namely return on equity, gross profit margin, operating profit margin, and return on assets, on explaining changes in the MVA of pharmaceutical and chemical companies listed on the Amman Stock Exchange. To achieve the study’s objectives, we analyzed the published financial statements of a sample consisting of 14 industrial companies out of a total of 53 companies listed on the Amman Stock Exchange during the period from 2008 to 2022. Relevant financial indicators were extracted from these statements to serve the purposes of the study. Correlation coefficients were employed to measure the extent to which the independent variables (profitability measures) could interpret changes in the dependent variable (MVA). One of the most significant findings of the study is that three dimensions of profitability measures have a statistically significant impact on explaining changes in the MVA of pharmaceutical and chemical companies listed on the Amman Stock Exchange, albeit to varying degrees. This suggests that traditional profitability measures still play a crucial role in influencing market perceptions of a company’s value, despite the potential limitations of these measures in capturing the full scope of a company’s performance and potential.

Comparative Analysis of Pra-Post Merger and Acquisition Financial Performance Reviewed From EVA, MVA and Financial Ratio Methods (Empirical Study of Non-Financial Sector Companies Listed on the IDX for the Period 2015-2020)

This study aims to compare the pre-post M&A financial performance of non-financial companies listed on the Indonesia Stock Exchange (IDX) in the 2-year period before mergers and acquisitions (M&A), in the year of M&A, and 2 years after M&A. Performance was measured using Economic Value Added (EVA), Market Value Added (MVA), and financial ratios. The research sample consisted of 22 companies selected by purposive sampling, and secondary data were analyzed from financial statements. Partial analysis was conducted with the Wilcoxon Sign Test because the data was not normally distributed, while simultaneous analysis used the MANOVA test with the STATA version 17 application. The results of simultaneous testing showed no significant difference in financial performance between before and after M&A. However, partial test results found significant differences in MVA variables in the period 2 years before, 1 and 2 years after M&A, as well as in the year of M&A. In addition, the ROA variable also shows significant differences in the 2-year period before, 1 and 2 years after M&A. However, the effect of M&A on MVA and ROA variables tends to be negative.

Assessing the Financial Health of the Company and its Relationship to its Market Value Added: Evidence from Industrial Companies Listed on the Amman Stock Exchange for the Period (2013-2021)

Purpose: The research aimed to analyze the relationship between the financial health of the company and the market value added assuming a significant correlation between the two variables. Methodology: Financial health was measured based on the Z-Score model while the market value added (MVA) was measured based on the capital invested in the company and the market value of the company. The sample of the study consisted of (8) industrial companies listed on the Amman Stock Exchange for the period (2013-2021). The principal data utilized in the analysis came from the balance sheets and profit and loss reports that were available on the official websites of the research sample companies. Findings: It was revealed through the analysis of the two variables that the company (APOT) shows higher financial health and market value added than the rest of the companies, followed by a number of companies in the research sample that had good financial health and market value added. Results of the analysis of the relationship between the two variables showed a significant positive relationship between the financial health of the company and the market value added, meaning that the better the financial health of the company, the more its market value increases and thus wealth is added to the owners. Unique Contribution to Theory, Practice and Policy: The results of this work can be used to improve the financial performance of companies, which calls for regular evaluation of the financial situation, identification of strengths and weaknesses in one's financial position, and an effort to mitigate risks and correct any shortcomings prior to their representation in the financial statements, The firm must also follow a strong financial strategy to achieve success and sustainability in the financial market.

The Influence of Economic Value Added (EVA), Market Value Added (MVA) And Company Value On Stock Prices PT. Bank Panin Dubai Syariah

Share price is an indicator of the success of running a company. When a company's share price rises, investors believe the company is successful in managing its business. If share prices continue to fall, it means the company has not succeeded in increasing its company value. This research aims to determine the influence of each variable Economic Value Added (EVA), Market Value Added (MVA), and Company Value on the share price of PT. Bank Panin Dubai Syariah both partially and simultaneously. This research is quantitative research with a correlational approach (correlation), the research data source is secondary data in the form of financial reports and share prices of the company PT. Bank Panin Dubai Syariah quarter 2014-2021. Data hypothesis testing in this study uses multiple linear regression tests. Data analysis includes classical assumption tests, multiple regression analysis, F tests and T tests. The results of the research reveal that the Economic Value Added (EVA) variable has a significant and negative effect on stock prices, EVA produces value negative, indicating that the company's performance and ability to generate wealth have not been achieved for the company and investors. The Market Value Added (MVA) variable has no significant and negative effect on stock prices. MVA produces a negative value which indicates that the company's main goal of increasing shareholder wealth has not been achieved. Meanwhile, the company value variable (PBV) produces a significant and positive value which indicates the share price is below 1, which means the share price is undervalued or relatively cheap.

Pengaruh Economic Value Added (EVA) dan Market Value Added (MVA) Terhadap Harga Saham dengan Return On Asset (ROA) Sebagai Pemoderasi

The purpose of this study was to analyze the effect of Economic Value Added (EVA and Market Value Added (MVA), on Stock Prices with Return On Asset (ROA) as a Moderating Variable in Household Appliances Sub-Sector Companies Listed on the Indonesia Stock Exchange (IDX). The independent variables used are Economic Value Added (EVA and Market Value Added (MVA). The dependent variable used is stock prices. The moderating variable used is Return On Asset (ROA). The population in this study is the Household Appliance Sub-Sector companies listed on the Indonesia Stock Exchange (IDX) in the 2000-2021 period. The sampling method used was purposive sampling method with a sample of 6 companies during the 8 year observation period. The analytical method of this study uses quantitative and moderating regression analysis. The results of this study indicate that EVA has a significant effect on stock prices. Meanwhile, ROA with EVA and MVA as moderating variables have a significant effect on stock prices.

The Mediating Effect of Dividend Policy on Profitability and Market Value Added on Stock Prices in Retail Companies in Indonesia

The purpose of this study was first to examine the simultaneous and partial effects of Profitability (ROE) and Market Value Added (MVA) on stock prices in Retail companies listed on the IDX. Second to examine the mediating effect of dividend policy (DPR) between Profitability (ROE) and Market Value Added (MVA) on stock prices in Retail companies on the Indonesia Stock Exchange. This research approach is quantitative which is associative in nature. The population used for this study were retail companies listed on the IDX in the 2019-2022 period totaling 13 companies. The sample technique uses a census technique where all companies are used as research samples so that 4 consecutive years of observation data are obtained with a total of 52 data observations. The data analysis technique uses Oldineray Least Square multiple linear regression andPath Analysis by conducting partial (t test) and simultaneous (F test) tests. The results of this study prove that in the first model partially profitability (ROE) has a significant effect on dividend policy (DPR), while Market Value Added (MVA) has no significant effect on dividend policy (DPR). The results of simultaneous testing prove that ROE and MVA simultaneously have a significant effect on dividend policy (DPR). The research results in the second model partially profitability (ROE) has no significant effect on stock prices, while Market Value Added (MVA) has a significant effect on stock prices. The results of simultaneous testing prove that ROE and MVA simultaneously have a significant effect on stock prices. The results of the third model in path analysis testing can be proven that dividend policy (DPR) is able to mediate the relationship between profitability (ROE) and stock prices. Dividend policy (DPR) is not able to mediate the relationship of Market Value Added (MVA) to stock prices.

The Effect of Economic Value Added (EVA) and Market Value Added (MVA) on Stock Returns

This study analyze the factors that affect stock returns in food and beverages companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period. The variables in this study are Economic Value Added (EVA) and Market Value Added (MVA). This research was conducted using multiple linear regression analysis. The data collection tools used are literature study and documentation with purposive sampling method. The sample used in this study were 12 companies from a total population of 30 companies. The results of this study indicate that the higher or lower the value of Economic Value Added (EVA) does not affect the value of Stock Return, as well as the higher or lower value of the Market Value Added (MVA) also does not affect the Stock Return.

Dampak Economic Value Added, Market Value Added dan Good Corporate Governance Terhadap Nilai Perusahaan Melalui Mediasi Ukuran Perusahaan

This research aims to analyze the influence of Economic Value Added (EVA), Market Value Added (MVA), Good Corporate Governance (GCG) on Company Value by Mediating Company Size in Food and Baverage Companies listed on the Indonesia Stock Exchange. The population in this study were 22 companies which were then used as samples. The analysis technique uses descriptive and inferential statistics. The research results show that EVA and MVA have a negative and significant effect on company value, GCG does not have a significant effect on company value and company size has a positive and significant effect on company value. Company size is able to mediate the influence of MVA and GCG on company value so that it has a positive and significant effect, but it is not able to mediate the influence of EVA on company value.

The Analysis of Financial Reporting Quality and Firm Value

The objective of this research is to obtain empirical evidence about the effect of financial reporting quality on firm value. Financial reporting quality is measured using two proxies, accrual quality through Ball-Shivakumar Model (AQ) and earnings management through Modified Jones Model (EM). Firm value is measured using share price, Price to Book Value, Tobin’s Q, and Market Value-Added. Control variables used are leverage (Debt to Equity Ratio), profitability (Return on Asset), and firm size (ln total assets). This study focuses on manufacturing businesses that were listed on the Indonesia Stock Exchange during the years 2018 and 2021. The sample was chosen through a purposive sampling technique, specifically targeting companies listed on the Indonesia Stock Exchange that operate in the manufacturing sector and provide audited financial statements. Analyzed the secondary data utilizing descriptive statistics, normality test, classical assumption tests, and hypothesis testing. The findings of this investigation are (1) AQ has no effect on share price, PBV, Tobin’s Q and MVA (2) EM has positive and significant effect on all proxies of firm value, except MVA. The quality of financial reporting, the level of leverage, the size of the firm, and its profitability all have a simultaneous and considerable impact on the value of the firm.

Optimizing Financial Performance: A Comprehensive Examination of Economic Value Added (EVA) and Market Value Added (MVA) at Telecommunication Companies in Indonesia

This research aims to determine the factors that influence the financial performance of telecommunications companies in Indonesia using the Economic Value Added (EVA) and Market Value Added (MVA) approaches. The background to this research arises from the need to understand how operational efficiency, financial policy, innovation, market competition, and economic conditions play a role in creating economic value and the market value of equity. Data collected from telecommunications companies during the 2017-2022 period formed the basis of the analysis, and the research methodology involved measuring EVA and MVA and assessing factors that influence financial performance. The results of this research provide in-depth insight into the complexity of the relationships between variables and their implications for the business strategy of telecommunications companies in Indonesia.

Analisis Kinerja Keuangan pada Sub Sektor Farmasi yang Terdaftar di Bursa Efek Indonesia Menggunakan Metode Economic Value Added dan Market Value Added

The pharmaceutical industry experienced growth from 2019 to 2021, driven by increased demand for medicines. However, in 2022, the growth of the pharmaceutical industry slowed down due to the impact of the Covid-19 pandemic in Indonesia. This research aims to describe the financial performance conditions of pharmaceutical sub-sector companies, measured using the Economic Value Added (EVA) and Market Value Added (MVA) methods. The research method used is a quantitative method with a descriptive approach. The type of data used is secondary data obtained from the website www.idx.co.id. The sample selection was carried out using purposive sampling technique, resulting in a total of 10 pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (BEI) during the period from 2019 to 2022. The results of the financial performance analysis of companies using the EVA method indicate that pharmaceutical sub-sector companies have a good performance as they were able to generate a positive Economic Value Added (EVA > 0), signifying that the companies generated profits greater than the cost of capital, thus indicating good financial performance. Meanwhile, the financial performance analysis using the MVA method shows that pharmaceutical sub-sector companies were able to produce a positive Market Value Added (MVA > 0), indicating that the performance of the pharmaceutical sub-sector is in a good condition as the market value of the companies experienced an increase that exceeds the total capital invested by shareholders.

Financial Performance Analysis Using EVA, MVA, FVA, and REVA Methods for Telecommunication Sub-Sector Companies listed on the IDX

The purpose of this study is to suggest an approach to analyzing the efficiency of telecommunications companies listed on the Indonesia Stock Exchange (IDX) using methods for determining Economic Value Added (EVA), Market Value Added (MVA), Financial Value Added (FVA), and Refined Economic Value Added (REVA). A summary of the relevant literature is formed on the bibliographic database. Statistical data based on information from the Indonesia Stock Exchange for four companies in the telecommunications sector over 5 years. Data from reports’ balance sheets, including reports of profits and losses, is investigated. The results of the survey demonstrated that a telecommunications company had a positive EVA value, which meant that it succeeded in creating economic value. The three telecommunications companies had a positive MVA value, which meant that they provided value-added through market capitalization. In four telecommunications companies, a positive FVA indicated that management was successful in providing financial value-added for the company. One of the four telecommunications companies produced a positive REVA, which meant an increase in economic value after the company paid off all liabilities to creditors and shareholders. The use of various value-added measures to assess the performance of Indonesian businesses is a scientific novelty that contributes to the development of corporate finance theory.

Effect of Capital Structure on Shareholder Value: Evidence from Panel ARDL Approach

This study examines the effect of capital structure on the shareholders’ value in Indian pharmaceutical industry collecting data over a period from 2001 to 2020. Further, the study also investigates the long-run and short-run relationship between capital structure and shareholder value. This study employs pooled, fixed, random effect regression models and panel autoregressive distributed lag analysis. The shareholder value of Indian firms is measured by earnings per share (EPS) and market value added (MVA) while the debt-equity ratio, interest coverage ratio, and total liabilities to total assets are the proxy variables for capital structure. The study reveals that capital structure influences shareholder value significantly. The findings also explored the existence of a long-run relationship between capital structure and shareholder value.