Open AccessPerformance of Indonesian manufacturing companies: Economic value-added approach
Author(s) -
Betty Tjandra,
Dwi Sulistyorini,
Rizky Mulia,
Titi Anggraeni,
Farah Margaretha Leon
Publication year - 2022
Publication title -
jurnal inovasi ekonomi
Language(s) - English
Resource type - Journals
eISSN - 2686-3804
pISSN - 2477-4804
DOI - 10.22219/jiko.v7i02.20447
Subject(s) - return on assets , fixed asset , weighted average return on assets , working capital , return on capital employed , business , stock exchange , economic value added , investment performance , fixed investment , weighted average cost of capital , debt ratio , market value added , rate of return , return on investment , monetary economics , finance , internal rate of return , return of capital , return on capital , debt , economics , market value , capital formation , financial capital , microeconomics , production (economics) , profit (economics) , incentive
This study aims to measure the company's performance based on Economic Value Added (EVA). The independent variables are Investment Capital, Return on Assets, Fixed Assets, Rate of Return on Fixed Assets, and Level Debt. This study uses data from 25 manufacturing companies listed on the Indonesia Stock Exchange over the 2016-2019 period. This study shows a significant negative effect of Investment Capital and Debt Level on EVA. The variable rate of return on fixed assets has a substantial impact on EVA, and there is no significant effect of the return on assets and fixed assets on EVA. Thus, it is expected that financial managers can increase profits and reduce debt to increase EVA.