Return on Equity and Earning per Share as Market Value Added Determinants of Infrastructure Companies listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.5555/ijosmas.v3i2.191Keywords:
Return On Equity, Earning Per Share, Market Value AddedAbstract
Adequate infrastructure development can affect the attractiveness of the investment climate in Indonesia. However, the development of Indonesia's infrastructure is not easy because Indonesia is an archipelago that is more complex. The government must be aware of the importance of improving the state of infrastructure so that the investment and business climate becomes more attractive. This study aims to identify and analyze return on equity and earnings per share as determinants of market value added for infrastructure companies listed on the Indonesia Stock Exchange. Data analyzed 2017-2019 period. Types of quantitative research. The population of all infrastructure companies, the sample criteria are companies that are consistently listed on the Indonesia Stock Exchange during the study period, using purposive sampling technique. The analysis technique is panel data regression analysis. The results of the study prove that return on equity and earnings per share simultaneously affect market value added. However, partially the return on equity and earnings per share do not affect the market value added. This research is then directed to add internal and/or external factors as well as those that can influence market value added to use a sample of companies such as mining, manufacturing, finance, property and real estate, agriculture and trade companies, not only analyzing the infrastructure company sector.
Downloads
References
Akgun, A. I., Samiloglu, F., & Oztop, A. O. (2018). The impact of profitability on market value added: Evidence from Turkish Informatics and Technology Firms. International Journal of Economics and Financial Issues, 8(4), 105.
Alipour, M., & Pejman, M. E. (2015). The impact of performance measures, leverage and efficiency on market value added: Evidence from Iran. Global Economics and Management Review, 20(1), 6–14.
Bappenas. (2015). Percepatan Pembangunan Infrastruktur. In Percepatan Pembangunan (pp. 1–18).
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial Management: Theory & Practice (Book Only). Cengage Learning.
Carini, C., Comincioli, N., Poddi, L., & Vergalli, S. (2017). Measure the performance with the market value added: Evidence from CSR companies. Sustainability, 9(12), 2171.
Chelsea, E. I., & Salim, S. (2020). Pengaruh Economic Value Added, Return On Equity, Dan Earning Per Share Terhadap Market Value Added Pada Perusahaan Jasa Subsektor Perbankan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2018. Jurnal Paradigma Akuntansi, 2(2), 641–649.
Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for business. Routledge.
Fahmi, I. (2015). Pengantar Manajemen Keuangan; Teori dan soal jawab. Alfabeta.
Gómez-Bezares, F., Przychodzen, W., & Przychodzen, J. (2017). Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance. Business Ethics: A European Review, 26(1), 1–17.
Gujarati, D. (2011). Econometrics by example. Palgrave Macmillan UK.
Gujarati, D., & Porter, D. C. (2006). Econometria Básica. Ed. Campus/Elsevier.
Halim, A., & Hanafi, M. M. (2009). Analisis Laporan Keuangan. Edisi.
Harahap, S. S. (2013). Analisis kritis atas laporan keuangan. PT. Raja Grafindo Persada.
Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A., & Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), 3811.
Indonesia-Investments. (2020). Infrastruktur di Indonesia. Www.Indonesia-Investments.Com.
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.
Martias, A. (2020). Analisa Pengaruh Economic Value Added, Return on Asset dan Return on Ekuitas Terhadap Market Value Added Perusahaan Saham Teraktif Di Bursa Efek Indonesia. Moneter-Jurnal Akuntansi Dan Keuangan, 7(2), 214–221.
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
Nakhaei, H., & Hamid, N. (2013). 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.
Nurhayati, M. (2013). Profitabilitas, Likuiditas Dan Ukuran Perusahaan Pengaruhnya Terhadap Kebijakan Dividen Dan Nilai Perusahaan Sektor Non Jasa. Jurnal Keuangan Dan Bisnis, 5(2), 144.
Pachori, S., & Totala, K. (2012). Influence of financial leverage on shareholders return and market capitalization: A study of automotive cluster companies of Pithampur,(MP), India. 2nd International Conference on Humanities, Geography and Economics (ICHGE’2012) Singapore, 23–26.
Pourali, M. R., & Roze, Z. (2013). The Relationship between market value added with refined economic value added and performance accounting criteria in the firms listed in the Tehran Stock Exchange. International Research Journal of Applied and Basic Sciences, 4(6), 1636–1645.
Prasad, H., & Shrimal, K. (2015). An empirical study on relationship between selected financial measures and market value added of infrastructural companies in India. Pacific Business Review International, 8(1), 95–97.
Rahmawati, M., & Yunita, I. (2018). Analisis Pengaruh Eva, Roa, Dan Roe Terhadap Mva Pada Perusahaan Yang Terdaftar Dalam Indeks Lq 45 Di Bursa Efek Indonesia (Bei) Periode 2011-2015. JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi), 2(2), 45–54.
Rodoni, A., & Ali, H. (2014). Manajemen Keuangan Modern (p. 210). Mitra Wacana Media.
Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. The Bell Journal of Economics, 23–40.
Salim, W., & Negara, S. D. (2018). Infrastructure development under the Jokowi administration: Progress, challenges and policies. Journal of Southeast Asian Economies, 35(3), 386–401.
Sharma, A. K., & Kumar, S. (2012). EVA versus convenational performance measures-empirical evidence from India. ASBBS Proceedings, 19(1), 804.
Sitorus, M., & Pangestuti, I. R. D. (2016). Analisis pengaruh ROE, ROA, EPS, DPS, DOL, DAN DFL Terhadap Market Value Added Pada Industri Manufaktur Di BEI Tahun 2011-2014. Diponegoro Journal of Management, 5(3), 948–960.
Young, S. D., O’byrne, S. F., Young, D. S., Young, S., & Stephen, O. (2000). EVA and value-based management (1st ed.). McGraw-Hill Professional Publishing.
Yusuf, Y., & Suherman, A. (2021). Pengaruh Likuiditas Dan Profitabilitas Terhadap Kebijakan Dividen Dengan Variabel Ukuran Perusahaan Sebagai Variabel Mediasi. Jurnal Akuntansi Dan Bisnis Indonesia (JABISI), 2(1), 39–49.
