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Journal : Winter Journal: IMWI Student Research Journal

The Effect Of Economic Value Added (Eva), Market Value Added (MVA), Refined Economic Value Added (REVA) On Stock Prices And Stock Returns In Manufacturing Companies Listed In Indonesia Stock Exchange Mariyani, Dede; Hariyanti, Hariyanti; Novida, Diah Rachmawatie
Winter Journal: IMWI Student Research Journal Vol. 4 No. 1 (2023): Winter Journal: IMWI Student Research Journal
Publisher : Institut Manajemen Wiyata Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52851/wt.v4i1.46

Abstract

The development of stock returns of manufacturing companies shows fluctuating movements from year to year. Return movements like this indicate that the condition of the manufacturing company is unstable so that it has an impact on the resulting stock returns. This uncertainty will certainly create its own concerns for investors who will invest in shares in manufacturing companies. With this, it is important for investors to analyze the company's condition first so that the investment made can provide returns. One aspect of the company that can be assessed by investors is the company's performance through financial statements. Helfert (2012: 98) grouped company performance measurements into three groups, namely (1) Earning Measures, (2) Cash Flow Measures, (3) Value Measures. Performance measurement based on value measures is economic value added (EVA), market value added (MVA), and refined economic value (REVA) This performance measurement holds the view that increasing value means also increasing long-term shareholder investment returns. Steward (2013: 115) states that value measures are considered to have capabilities that exceed Another performance measurement, because it takes into account all factors related to the creation (value) of the company that have an impact on the increasing prosperity of shareholders. The purpose of this study is to test EVA, MVA, and REVA against stock prices and stock returns. In this study using a research sample of 104 manufacturing companies taken through random sampling in the period 2014-2016. Data analysis and hypothesis testing in this study used the Partial Least Square Path Modeling (PLS-SEM) method. The results of this study show that EVA, MVA, and REVA have a significant positive relationship with stock price and stock return . By looking at the results of this study, it shows that performance appraisal using the EVA, MVA, and REVA methods has a strong influence on stock prices and stock returns . This shows that value-based valuation is important because every investment cannot escape the consequences of the incurring cost of capital as compensation for the funds used to finance the investment. The return on an investment will only mean that if the amount of return exceeds the cost of capital incurred to realize the investment, measurement certainly requires an accurate valuation method.
Co-Authors Abdullah Hasibuan, Hamdi Afriyani Afriyani Agus Utomo Ahmad Eddison Ahmad Muhibbin Aisyah Aisyah Al Rafni Alam, Andi Rifqah Purnama Amalia Amalia Angraini, Risa Dwi Anisa, Nurul Ansor, Nisa Aulia Apriani, Triana Ardestya Linanjung, Yolanda Arianti, Sri Dita Aris Munandar Artiyany, Megawhati Asmawiyah Asmawiyah Ayu Safira, Ayu Azzahra, Khadijah Brotojoyo, Endang Budi Halomoan Siregar Cecep Darmawan, Cecep Chandra, Ady Charisma, Shintia Lintang Cindy Cinthia Dadang Sundawa, Dadang Dary DN, Widia Ulan Delvia, Elyca Dian Nurmastuti Dini Handayani, Dini Djulaeka, Djulaeka Endang Saryanti Etin Diah Permanasari Fakhrana, Ayu Fatmawati, Sofia Fatmawati, Yuliana Indah Febriansyah Febriansyah Filma Alia Sari Firmanto, Johan Dwi Gantini, Sri Nevi Grosman, Kingkel Panah Gumilang, Intan Hadi Sunaryo Hambali Hambali Hamidiyanti, Baiq Yuni Fitri HANIFAH RAHMI Harahap, Ramona Hasanah, Hikmatun Hikmah, Ikmalul Husnul Khatimah I Made Agus Oka Gunawan Ika Yuni Astuti Indah Handayani, Wiwik Irayanti, Irma Irayanto, Irma Ismayani, Widya Istianah, Anif Judijanto, Loso Jumili Arianto Kalista, Anggia Kamalia, La Ode Kapriani Kapriani, Kapriani Kristianto, Jusuf L, Andreas Utomo Lasty Agustuty Leni Anggraeni Mahmudi, Bambang Manurung, Intan Zarina mariyani, dede Masganti Sit Masyitoh, Iim Siti Mufaqqih Amrullah, Bashirotul muhammad khoiruman, muhammad Muhammad Yusuf Murni Sulistyowati, Murni Muryati Muryati Nafi’ah, Khusnun Nashiroh, Annisa Laylatun nasution, candri wulan Nasution, Ummi Hani Novida, Diah Rachmawatie Nunuk Herawati Nur Azizah Nur Fatwa Basar NURJAYA NURJAYA, NURJAYA Nurlinda Nurlinda, Nurlinda Nuryanah, Nuryanah Nuryati Nuryati Pamungkas, Septiana Tri Permady, Gigieh Cahya Pramudika, Risang Galih Primahadi, Indra PRIYANTI, DHEA Putra, Christophorus Indra Wahyu Putri, Hilya Putri, Riska Amelia Radini, Radini Rahmat Rahmat Ratna Umi Nurlila Rina Ani Sapariyah Rizki Aulia Saefuloh, Irfan Saepudin Karta Sasmita Saputra, Ridwan Cahya Saputri, Aulia Indah Saragih, Sri Rahmah Dewi Sari Nurlaily, Sari Sari, Novriani Rahma Sari, Putri Lidiana Permata Sari, Retno Lia Sari, Wiwin Novita Sasmita, Saepudin Karta Sawitri, Nonik Wulan Septiana Novita Dewi Setiyawan, Sukamto Jodi Sholihah, Husna Imro’atush Siahaan, Matdio Sinambela, Helen F Siregar, Widia Friliska Sofiyani, Ratu Amada Subagio, Mochammad Suciati, Raihana Tresna Suhendra, Agus Suryanef Suryanef Suryani Manurung Susanti, Nani Irma Syabrina, Muhammad Thaha, Salmiyah Utama, Heriyanta Budi Wariati, Ambar wati, Rizki amalia Wibowo Heru Prasetiyo Widaningsih Widaningsih, Widaningsih Widiarochmawati, Niniek Yasin, Nurfatwa Andriani Yesica Siahaan, Chrystin Yudi Supiyanto Yunarta, Farizki