Article Sidebar

Download
PDF
Statistic
Read Counter : 86 Download : 63

Downloads

Download data is not yet available.

Main Article Content

Abstract

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.

Keywords

Telecommunication Economics Financial Performance Economic Value Added (EVA) Market Value Added (MVA) Operational Efficiency

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Adiandari, A. M., & Anggara, I. K. B. (2024). Optimizing Financial Performance: A Comprehensive Examination of Economic Value Added (EVA) and Market Value Added (MVA) at Telecommunication Companies in Indonesia. Ilomata International Journal of Management, 5(1), 212-232. https://doi.org/10.52728/ijjm.v5i1.1047

References

  1. Ahmad, I., Alam, M. S., & Yameen, M. (2019a). A study of economic value added (EVA) & market value added (MVA) of Hindustan petroleum corporation limited. Global Journal of Economics and Business, 6(1), 225–237.
  2. Ahmad, I., Alam, M. S., & Yameen, M. (2019b). A study of economic value added (EVA) & market value added (MVA) of Hindustan petroleum corporation limited. Global Journal of Economics and Business, 6(1), 225–237.
  3. Awan, A. G., Siddique, K., & Sarwar, G. (2014). The effect of economic value added on stock return: evidence from selected companies of Karachi stock exchange. Research Journal of Finance and Accounting, 5(23), 140–152.
  4. Bognárová, K. J. (2017). Analysis of The Relationship Between Economic Value Added and Market Value Added. Challenges of the Knowledge Society, 793–796.
  5. Choong, Y. V. (2021a). Economic Value Added (EVA) And Market Value Added (MVA) Towards Value Creation. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), 6046–6050.
  6. Choong, Y. V. (2021b). Economic Value Added (EVA) And Market Value Added (MVA) Towards Value Creation. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), 6046–6050.
  7. Diana, Y. M., & Sriyono, S. (2022). Analysis of the Effect of Economic Value Added (EVA), Market Value Added (MVA), Financial Value Added (FVA), and Return on Investment (ROI) on Stock Prices. Academia Open, 7, 10–21070.
  8. Geng, S., Liu, S., & Liao, X. (2021). Operating performance of tourism listed companies in China: The perspective of economic value added. SAGE Open, 11(1), 2158244020981064.
  9. Irawan, F., & Manurung, N. Y. (2020). Analisis Economic Value Added (EVA) dan Market Value Added (MVA) sebagai alat ukur kinerja keuangan pt garuda indonesia tbk tahun 2017-2019. Jurnal Pajak Dan Keuangan Negara (PKN), 2(1), 31–45.
  10. Irawan, J. L. (2021). Pengaruh Return On Equity, Debt to Equity Ratio, Basic Earning Power, Economic Value Added dan Market Value Added Terhadap Return Saham. Jurnal Akuntansi, 148–159.
  11. Jakub, S., Viera, B., & Eva, K. (2015). Economic Value Added as a measurement tool of financial performance. Procedia Economics and Finance, 26, 484–489.
  12. Jankalová, M., & Kurotová, J. (2020). Sustainability assessment using economic value added. Sustainability, 12(1), 318.
  13. Johan, S. (2018). The relationship between economic value added, market value added and return on cost of capital in measuring corporate performance. Jurnal Manajemen Bisnis Dan Kewirausahaan, 2(1).
  14. Kurnianingsih, H. T., & Rahayu, S. (2020). Financial Performance Assessed From Economic Value Edded (EVA) and Market Value Added (MVA) Cases in the Cosmetics Sub-Sektor and Household Needs Listed On the BEI. Budapest International Research and Critics Institute, 3(4), 3179–3184.
  15. Lee, J., & Kwon, H.-B. (2019). The synergistic effect of environmental sustainability and corporate reputation on market value added (MVA) in manufacturing firms. International Journal of Production Research, 57(22), 7123–7141.
  16. Maas, L. T., Sadalia, I., Ilham, R. N., & Sinurat, M. (2021). Opportunity Funding Model to Increase Economic Value Added MSMEs Sector at Moment of Pandemic Covid-19. 3rd International Conference on Business and Management of Technology (ICONBMT 2021), 244–251.
  17. Maeenuddina, R. B., Hussain, A., Hafeez, M., Khan, M., & Wahi, N. (2020). Economic value added momentum & traditional profitability measures (ROA, ROE & ROCE): A comparative study. Test Engineering and Management, 83(April), 13762–13774.
  18. Maitah, M., Saleem, N., Malec, K., Boubaker, M., & Gouda, S. (2015). Economic value added and stock market development in Egypt. Asian Social Science, 11(3), 126–134.
  19. Mariyani, D., Hariyanti, H., & Novida, D. R. (2023). 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. WINTER JOURNAL: IMWI STUDENT RESEARCH JOURNAL, 4(1), 10–22.
  20. Nakhaei, H., & Hamid, N. (2013a). Analyzing the relationship between economic value added (EVA) and accounting variables with share market value in Tehran stock exchange (TSE). Middle-East Journal of Scientific Research, 16(11), 1589–1598.
  21. Nakhaei, H., & Hamid, N. (2013b). The relationship between economic value added, return on assets, and return on equity with market value added in Tehran Stock Exchange (TSE). Proceedings of Global Business and Finance Research Conference, 16(11), 1–9.
  22. Obaidat, A. N. (2019). Is economic value added superior to earnings and cash flows in explaining market value added? An empirical study. International Journal of Business, Accounting & Finance, 13(1).
  23. Pasha, A., & Ramzan, M. (2019). Asymmetric impact of economic value-added dynamics on market value of stocks in Pakistan stock exchange, a new evidence from panel co-integration, FMOLS and DOLS. Cogent Business & Management, 6(1), 1653544.
  24. Purnamasari, D. (2015). The effect of changes in return on assets, return on equity, and economic value added to the stock price changes and its impact on earnings per share. Research Journal of Finance and Accounting, 6(6), 80–90.
  25. Ray, K. K. (2014). EVA as a Financial Metric: the relationship between EVA and Stock Market Performance. European Journal of Business and Management, 6(11), 105–114.
  26. Sabol, A., & Sverer, F. (2017). A review of the economic value added literature and application. UTMS Journal of Economics, 8(1), 19–27.
  27. Sahara, L. I. (2018). The analysis of financial performance using economic value added (EVA) and market value added (MVA) methods and its influence on stock return of transportation company listed in Indonesia Stock Exchange. Scientific Journal Of Reflection: Economic, Accounting, Management and Business, 1(3), 301–310.
  28. Salehi, M., Enayati, G., & Javadi, P. (2014). The relationship between intellectual capital with economic value added and financial performance. Iranian Journal of Management Studies, 7(2), 259–283.
  29. Silvia, R., & Wangka, N. (2022a). Economic Value Added and Market Value Added as A Measuring Tool for Financial Performance. International Journal of Social Science and Business, 6(1), 135–141.
  30. Silvia, R., & Wangka, N. (2022b). Economic Value Added and Market Value Added as A Measuring Tool for Financial Performance. International Journal of Social Science and Business, 6(1), 135–141.
  31. Sindi, S., Anggeraeni, D., Situmeang, A., & Sunardi, N. (2023a). Penilaian Kinerja Keuangan menggunakan Economic Value Added (EVA) dan Market Value Added (MVA) dengan Time Series Approach pada perusahaan Properti di Indonesia”. Neraca: Jurnal Ekonomi, Manajemen Dan Akuntansi, 1(2), 359–365.
  32. Sindi, S., Anggeraeni, D., Situmeang, A., & Sunardi, N. (2023b). Penilaian Kinerja Keuangan menggunakan Economic Value Added (EVA) dan Market Value Added (MVA) dengan Time Series Approach pada perusahaan Properti di Indonesia”. Neraca: Jurnal Ekonomi, Manajemen Dan Akuntansi, 1(2), 359–365.
  33. Sindi, S., Anggeraeni, D., Situmeang, A., & Sunardi, N. (2023c). Penilaian Kinerja Keuangan menggunakan Economic Value Added (EVA) dan Market Value Added (MVA) dengan Time Series Approach pada perusahaan Properti di Indonesia”. Neraca: Jurnal Ekonomi, Manajemen Dan Akuntansi, 1(2), 359–365.
  34. Siniak, N., & Lozanoska, D. K. (2019). A review of the application of the concept of economic and smart sustainable value added (SSVA) in industries performance evaluations. BRAIN. Broad Research in Artificial Intelligence and Neuroscience, 10(1), 129–136.
  35. Subedi, M., & Farazmand, A. (2020). Economic value added (EVA) for performance evaluation of public organizations. Public Organization Review, 20, 613–630.
  36. Tanjung, P. R. S., & Wahyudi, S. M. (2019). Analysis the Effect Disclosure of Sustainability Report, Economic Value Added and Other Fundamental Factors of Companies on Company Value. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(2), 237–249.
  37. Tikasari, N., & Surjandari, D. A. (2020). The effect of economic value added and financial performance on stock return. Saudi Journal of Business and Management Studies, 5(6), 343–352.
  38. Zamzami, B. (2023). ANALYSIS OF FINANCIAL PERFORMANCE USING ECONOMIC VALUE ADDED (EVA), MARKET VALUE ADDED (MVA), AND FINANCIAL VALUE ADDED (FVA) METHODS IN PT. MAYORA INDAH, TBK PERIOD 2019–2021. International Journal Management and Economic, 2(1), 46–53.
  39. Zawna, C. V., & Singh, R. K. G. (2020). Economic value added and stock price of firms in Indian stock market. Journal of Commerce and Accounting Research, 9(1), 25.
  40. Zhang, J., & Aboud, A. (2019). Determinants of economic value added (EVA) in Chinese listed banks. Asian Review of Accounting, 27(4), 595–613.