Market Value Added Research Articles

ANALISIS DETERMINAN RETURN SAHAM INDUSTRI MANUFAKTUR TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2017 - 2020

This research aims to examining factors that affect stock returns. The dependent variable used in this study is stock returns. Independent variables used in this study is Economic Value Added (EVA), Operating cash flow, Earnings, Operating Leverage, dan Market Value Added (MVA). The population in this research is manufacturing companies listed in Indonesia Stock Exchange 2017-2020. The sample in this study is 21 companies selected by using purposive sampling method. This study used multiple linear regression analysis as an analytical tool. The results showed that H1 Economic Value Added ( EVA ) had no significant effect on stock returns. H2 Operating Cash Flow is a significant effect on stock returns. H3 Earnings significant effect on stock returns. H4 Operating Leverage no significant effect on stock returns. H5 Market Value Added ( MVA ) had no significant effect on stock returns.

The effect of financial policy and capital assets on firm performance: Evidence from service companies listed on the Amman Stock Exchange

This study aimed to demonstrate the impact of the financial policy, represented in debt policy and dividend policy, and the capital assets on the financial performance measured by return on equity, total assets turnover and market value added of 53 service companies listed on the Amman stock exchange during the period 2014–2018, using the panel data models. According to the results of testing performed on return on equities (ROE) model, total assets turnover (TAT) model, and market value added (MVA) model, it can be concluded that debt policy has a negative significant effect on market value added and total assets turnover, on the other hand, it has a negative insignificant effect on return on equity. The financial performance of the Jordanian service companies is influenced negatively by the debt ratio as a measure of financial policy; which means service companies are using heavy debt to finance the operating activities, which increases financial cost and the risk of financial failure. The study recommended that service companies can increase the volume of investment in fixed assets to generate high financial performance indicators.

Derivative Analysis of Value Added to Stock Returns at Jakarta Islamic Index

<p>This study aims to examine the effect of value added derivative such as economic value added (EVA), market value added (MVA) and refined economic value added (REVA) on stock return with stock price as an intervening variable. The object of this study are all Islamic stocks listed in the Jakarta Islamic Index (JII) in the period 2014-2019. This study using purposive sampling method and obtained by 11 companies. Data processing using panel regression with common, fixed and random modelling approach. The results show that economic value added (EVA) has no effect either on stock prices or stock returns, market value added (MVA) affects the stock price and stock return, while refined economic value added (REVA) has no effect on both. Then, stock prices are only able to mediate the effect of market value added (MVA) on stock return.</p>

Analysis of performance company : Based on Value Added and Financial Statement

This research is the concept of proving the function and / or important factors analytically and experimentally. This study aims to analyze investment decisions as measured by stock prices with performance measures as the independent variable. Company performance measures measured through economic value added (EVA), market value added (MVA), Return on Equity (ROE), and Earning Per Share (EPS). The research method used is quantitative research and the sample of this study is an investor index company listed on the Indonesia Stock Exchange (BEI) in 2015 - 2018. The method of analysis used is multiple regression test. The results of this study indicate that EVA and MVA have no effect on stock prices, while ROE and EPS have an effect on stock prices. So it can be denied that investors in Indonesia, company investors 33, look at the figures shown in historical financial reports more than they look at the residual income.

Corporate Social Responsibility And Financial Ratio on Market Value Added

The purpose of this study is to empirically examine the Effect of Corporate Social Responsibility (CSR) and Financial Ratio on Market Value Added (MVA), both simultaneously and partially. This research was conducted using a sample of 33 companies winning 2016 CSR and Top CSR 2017 Appreciation by determining their samples (purposive sampling) because there were certain considerations over a period of 2 years (2015-2016).
 The results of this study indicate that simultaneously the effect of CSR and Financial Ratio together does not significantly influence Market Value Added (MVA). And partially ISO9001, ISO14001, ISO26000, OHSAS18001, Current Ratio (CR), Debt to Equity Ratio (DER), Price Earnings Ratio (PER), Total Asset Turnover and Return on Sales do not significantly influence MVA. While partially only ESOP has a significant effect on MVA.

An Analysis of Determinants of Shareholders Value of Nifty Companies in India – 2009-10 to 2017-18

In this research, one of the prominent Shareholder Value Metric, Market Value Added (MVA) is used to measure shareholder value. The primary Objective of this research is to objectively and empirically identify the profit variants which maximize shareholders’ value on a long term. This paper focuses on bridging this gap in the present research in finance. A sample of 50 listed companies comprising the NIFTY Index in India has been chosen. Multiple Regression Analysis was primarily conducted in order to observe the causal influence of profit variants, viz., the average figures of Earnings Before Interest, Taxes, Depreciation and Amortization, (EBITDA), Earnings After Taxes(EAT), Free Cash Flows(FCFs), Cash From Operations(CFOs) and Dividend Pay-out Ratio(D/P Ratio) on Shareholders’ Value. The data pertaining to the above has been collected for a period of nine years (FY 2009-10 to FY 2017-18). Multiple Regression Results reveal that the prominent profit indicators which contribute significantly towards the determination of MVA are EAT, D/P Ratio and CFOs. This indicates that MVA of the companies comprising the NIFTY INDEX is fairly determined by the net profits (after taxes) or EAT, D/P Ratio and by CFOs.

A Longitudinal Study on Dividend Policy and Shareholders’ Wealth Creation of FMCG Sector in India

The key aim of this research article is to analyze the performance of firms through dividend policy variables and shareholders’ wealth creation of the Fast moving consumer goods (FMCG) sector of India. The selected companies comprise of all listed Nifty FMCG Index firms in National stock exchange. The variables like Dividend payout ratio (DPR), dividend yield (DY) and dividend per share (DPS) for dividend policy analysis and Market value added (MVA) were examined over a period of 10 years (2010-2019). Authors used Statistical tools like Spearman’s Correlation, Kruskal Wallis (KW) H test and Post hoc test of Dunn-Bonferroni. Results found that there is a statistically significant and positive relationship between dependent and independent variables. KW test result shows that there is a significant difference between performance of sample firms. Post hoc test also validated the results of Kruskal Wallis test by considering pair wise comparison. Moreover, From the calculation of Market Value added (MVA), it was found that ITC added the highest wealth for its shareholders’ during the entire study period followed by Hindustan Unilever Limited (HUL) and Dabur India Limited. Godrej Industries added positive but lowest market value during the study period. All the selected firms created wealth for their shareholders. The study can be useful to the prospective investors and investment or brokerage firms to make investment decisions for the long term. Moreover, research can be further carried out by considering other areas like operational efficiency, Profitability and so on.

Analisis Perbandingan Kinerja Keuangan Perusahaan Akuisitor Sebelum dan Sesudah Merger & Akuisisi (M&A) Tahun 2015

The purpose of this study is to analyze differences in the financial performance of acquisitor companies before and after mergers & acquisitions (M&A) in 2015. Financial performance measurement tools are Current Ratio (CR), Debt to Equity Ratio (DER), Return on Equity (ROE), Total Assets Turnover (TATO), and Market Value Added (MVA). The observation period is for 3 years before and after mergers & acquisitions. The sampling technique that is purposive sampling was obtained by 4 companies of acquisitor. Data analysis techniques used Wilcoxon signed-rank t-test and paired sample t-test. The results of this study are that there is no difference in CR and DER but there are differences in ROE, TATO, MVA in the acquisition company 3 years before and after M&A. The overall results are concluded that the financial performance of the acquisition companies after M&A decreased so that the synergy expected by the company was not achieved.

An empirical investigation of the relationship between TSR, value-based and accounting-based performance measures

PurposeThe paper aims to find out the information content of performance measures from accounting and value-based measures that best explain the total shareholder return.Design/ methodology/ approachTo achieve this aim, static and dynamic panel data regression analysis is applied to the sample of 56 Indian companies taken from the Nifty Midcap 100 Index, between 2012 and 2019.FindingsIt is found that accounting-based measures have more relative information content in predicting total shareholder return as compared to value-based measures. Economic value added (EVA) and cash value added (CVA) do not add to the information content provided by accounting-based measures. A combination of accounting-based measures and value-added intellectual coefficient (VAIC) adds marginally to the information content provided by accounting-based measures in explaining the total shareholder return. Dynamic panel regression analysis shows that return on assets (ROA), return on capital employed (ROCE), return on equity (ROE) and EVA have a significant impact on total shareholder return.Originality/valueIn this study, along with EVA, other measures from value-based measures, i.e. CVA are empirically tested to explain the total shareholder return. Intellectual capital efficiency computed by VAIC is also empirically tested along with accounting-based measures, EVA, CVA and market value added (MVA). To bring robustness to findings, data are tested by using dynamic panel regression analysis.

Dynamic marketing productivity and firm intangible value: insights from airlines industry

ABSTRACT Given increasing pressure from shareholders to demonstrate how productively marketing resources and expenditures are being managed, several theoretical and empirical studies have demonstrated how to measure marketing productivity in recent decades. However, no study thus far has provided any empirical evidence pertaining to the financial implications of marketing productivity. This study attempted to fill this conspicuous lacuna in the literature. Drawing propositions from the resource-based view (RBV) and dynamic capabilities theory, this research puts forward the notion of dynamic marketing productivity (DMP) and argues that dynamic marketing productivity (DMP) can be a source of competitive advantage, thereby positively affecting a firm’s financial performance. Drawing samples from the US-based airlines industry, this study demonstrates that the level of a firm’s dynamic marketing productivity positively affects a firm’s intangible value as measured by Tobin’s q and market value added (MVA). The results are robust to alternative measures of firm intangible value as well as alternative methods of estimations.

The reciprocal and nonlinearity relationship between corporate social responsibility and market value added: case study in Indonesia

PurposeThis study aims to examine the relationship between corporate social responsibility (CSR) and market value added (MVA) through a more comprehensive analysis of the relationship between the two variables.Design/methodology/approachThe population used in this study is all companies listed on the IDX. Sample selection is done by purposive sampling method where the criteria chosen in this research are: listed on the IDX during 2010–2016 and published its annual financial statements completely. The analysis tools using panel parametric regression are based on the reciprocal relationship (MVA related to CSR, and CSR related to MVA). This model should be linearity, based on RESET test. On the other hand, an alternative model is based on a nonlinearity relationship (the linearity of parametric regression is not fulfilled), the modified panel nonparametric regression (accommodates the reciprocal and nonlinearity relationship).FindingsSocial responsibility or CSR shows a positive relationship with MVA, also the MVA has a positive relationship with CSR. This means that when CSR value increases, then MVA also increases, vice versa. When the company discloses CSR, the company maintains good relationships not only with its shareholders but also with other stakeholders including the community and its environment. Therefore, it can enhance the company's perception and reputation to shareholders that the company is a responsible company, in the sense of being responsible not only to shareholders but also to other stakeholders. This then makes shareholders interested to invest their capital in companies with good CSR. Increased capital by shareholders in the form of stock purchases can affect the high or low stock price of a company; if the company price is high, then the higher the value of its MVA because the stock price is an element of MVA.Originality/valueBased on the aforementioned phenomenon, the relationship has the reciprocal characteristics, which means that CSR has a relationship with MVA; on the other hand, MVA also has a relationship with CSR (with a different time lag). Also, this study detects the nonlinearity relationship between variables shown in Fernandes and Fresly (2017). This part as the originality of this paper focused on the reciprocal and nonlinearity relationship between CSR and MVA.

Pengaruh Economic Value Added (Eva) Dan Market Value Added (Mva) Terhadap Return Saham

This study aims to empirically examine the effect of Economic Value Added and Market Value Added on stock returns on property and real estate companies listed on the Indonesian stock exchange, the period used in this study is from 2015-2017. This research uses quantitative methods. The sampling technique in this study used a purposive sampling technique.based on prederemined criteria obtained a sampel of 15 companies for 3 years with 45 observation lists.the data analysis technique used is multiple liniear regression. Based on these results it shows that: Economic Value Added (EVA) has a positive and significant effect on stock returns and Market Value Added (MVA) has a positive and significant effect on stock return.

Теория стоимостного подхода к управлению промышленными предприятиями

The article discusses the theoretical aspects of managing the value of industrial enterprises based on models that have become as wide-spread as possible, such as economic value added — EVA (Economic Value Added), MVA (Market Value Added), Equity value added — SVA (Shareholder Value Added), monetary value added — CVA (Cash Value Added), RCF (Resident Cash Flow) and Balanced Scorecard (BSC). The given models were chosen from a large number of proposed instruments in the works of domestic and foreign scientists, as the later concepts only developed the theory of their application. The purpose of the article was to share the determinants of the increase in the cost of industrial enterprises. The study is based on the theory of VBM (Value-Based Management) — valuebased management. The formation of this theory and the above-mentioned models in the historical aspect taking into account the factors of their occurrence are considered. The characteristic features of each model in terms of their application to cost management of modern domestic industrial enterprises were assessed. On the basis of the conducted study, the determinants of the increase in the cost of industrial enterprises and the methodology of their management have been determined.

The impact of economic value added (EVA) and return on assets on created shareholder value of Vietnamese firms

The financial performance of an enterprise affects the valuation of assets to its shareholders. Maximizing the value of assets for shareholders is an important goal of corporate financial management, so shareholders always expect share value increases to achieve optimal investment efficiency. The objective of the study is to analyze the impact of Economic Value Added (EVA) and Return on Assets (ROA) on Created Shareholders Value (CSV) in Vietnamese listed companies during 2011-2016. Whether EVA measure better than the traditional performance measure like ROA on CSV? The CSV indicator is measured by two models: the Fernandez model (2001) and the Market Value Added (MVA) model. The regression methods were being used are the OLS regression model and the Robust regression model. The research results show that EVA has a positive impact on CSV in most years in the period of 2011-2016. In addition, EVA is more effective than ROA in explaining the changes in CSV in most years during the research period, showing the outstanding advantage of EVA in evaluating CSV over ROA. This study encourages companies to use a combination of different measurement methods to valuate shareholder assets and financial performance.

The Impact of Market Value Added to Shareholder Value: Evidence from Indonesia Firms

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.

ANALISIS PENILAIAN KINERJA KEUANGAN MENGGUNAKAN PENERAPAN ECONOMIC VALUE ADDED (EVA) dan MARKET VALUE ADDED (MVA) PADA PERUSAHAAN TELEKOMUNIKASI YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE TAHUN 2015-2018

This study aims to determine the assessment of financial performance using Economic Value Added (EVA) and Market Value Added (MVA) methods for telecommunications companies listed on IDX in the period 2015-2018. EVA is an estimate of the actual economic profit of business for particular year. MVA is the reduction between market value of equity and equity capital invested. The research method used is a quantitative descriptive method with a sampel of telecommunications companies listed on IDX, with secondary data collection techniques. The results of this study indicate that from 2015-2018 PT. TELKOM has positive EVA, In 2015-2016 BTEL has postive EVA value, while 2017-2018 EVA negative value. ISAT 2015-2016 EVA value is negative, 2017 EVA Value is positive, 2018 EVA value is negative. While In 2015 XL has EVA negative EVA value, In 2016-2017 EVA value is positive, and 2018 XL has EVA negative. For the MVA calculation form 2015-2018 PT. TELKOM and BTEL have positive MVA values, FREN has MVA negative. In 2015 ISAT MVA is negative. In 2016-2018 the value of MVA is positive. Whereas In 2015-2016 XL has negative MVA, In 2017-2018 MVA value is positive. It can be seen that although the EVA value is positive, the MVA value is not necessarily positiv

Is Apollo Tyres Creating or Destroying Shareholders’ Wealth?

There has been a growing concern about the performance measures based on traditional accounting information such as return on equity (ROE), return on capital employed (ROCE), return on net worth (RONW), earning per shares (EPS), net operating profit after taxes (NOPAT) and return on investment (ROI). These measures although widely used fail to capture the shareholders’ value creation/destruction as a result of management actions. The concept of economic value added (EVA) and market value added (MVA) have gained popularity all over the world particularly in the USA, the UK and European countries. EVA and MVA are finding acceptance as internal and external performance measures because these two measures are consistent with the organizational objective of shareholders’ value creation. Due to its popularity, a lot of research work has been conducted in the late 1990s covering diverse issues on EVA and MVA. In the light of the above, the present study made an attempt to calculate EVA as well as MVA and to analyze whether Apollo Tyres is creating or destroying shareholders’ wealth during the study period.

Economic Value Added (EVA) dan Market Value Added (MVA) Sebagai Alat Ukur Kinerja Keuangan (Studi Kasus pada PT. Mayora Indah, Tbk. dan PT. Unilever Indonesia, Tbk.)

This study aims to analyze the financial performance of PT. Mayora Indah, Tbk. and PT. Unilever Indonesia, Tbk. during the 2018 period, using Economic Value Added (EVA) and Market Value Added (MVA) measurement tools. The type of data used is quantitative data and the secondary data obtained from www.idx.co.id. The results showed that the financial performance of PT. Mayora Indah, Tbk. have not achieved such satisfying results, where the company has not been able to create economic added value shown through the negative EVA value. However, by obtaining a positive MVA value, it shows that PT. Mayora Indah, Tbk. still able to increase shareholder wealth. While PT. Unilever Indonesia, Tbk. in 2018 has shown good financial performance, where the company is able to create economic added value that is seen through the positive EVA value of the company. In addition, the MVA results obtained indicate that the company is also able to increase the wealth of its shareholders .

Analysis of Economic Value Added and Market Value Added to Measure Financial Performance in Pulp and Paper Companies

Purpose: The purpose of this study was to determine the company's financial performance in the pulp and paper industry which was measured using the concept of Economic Value Added (EVA) and Market Value Added (MVA) during the period 2017 and 2018.
 Design/methodology/approach: Research data is obtained through related websites and literature review.
 Findings: The results of the measurement of EVA and MVA for the period 2017 and 2018 show only PT.Alkindo Naratama, Tbk. which adds to the economic value of the company and market value added (> 0). 
 Research limitations/implications: The population in this study consisted of all pulp and paper companies that had go public and be listed on the Indonesia Stock Exchange (IDX), which is as many as nine companies, then do the purposive sampling selection which obtained a sample of four companies. 
 Practical implications: While three companies, namely PT. Kedawung Setia Industrial, Tbk. PT.Suparma, Tbk. and PT. Kertas Basuki Rachmat, Tbk. experience instability in EVA and MVA. 
 Originality/value:

PENGARUH ECONOMIC VALAUE ADDED (EVA), MARKET VALUE ADDED (MVA), LAVERAGE DAN KEBIJAKAN DEVIDEN TERHADAP RETURN SAHAM PERIODE 2016-2018

This study aims to measure the Effect of Economic Valaue Added (EVA), Market Value Added (MVA), Leverage and Dividend Policy on Stock Returns for the 2016-2018 Period. The object of this research is in the form of food and beverage sub-sector manufacturing companies with a research period of 2016 - 2018. This study uses a purposive sampling technique with a total sample of 12 food and beverage sub-sector manufacturing companies, where the data used are secondary data. The analysis technique used is multiple linear regression analysis and data analysis by conducting classical assumption and hypothesis testing. The analysis shows that only Economic Valaue Added (EVA), Market Value Added (MVA), Leverage and Dividend Policy variables have a significant effect on stock returns. Based on the calculation results, it is known that the F value of 4.165 with a significant level of 0.008 because the significant level is smaller than 0.05, the results of the study are: there is a significant effect of Economic Valaue Added (EVA), Market Value Added (MVA), Leverage and Policy Dividends on stock returns in the manufacturing industry on the IDX. The Adjusted R2 value indicates the contribution of all independent variables with the dependent variable, so the Adjusted R2 of 0.266 means X1 (EVA), X2 (MVA), X3 (Laverage), X4 (Dividend Policy) is able to contribute 26.6% to changes stock return (Y)