The Analysis of The Relationship Between Eva (Economic Value Added) and MVA (Market Value Added) at Manufacture Industry

Abstract

Sendy Bayn Aji (2007). The Analysis of The Relationship Between EVA (Economic Value Added) And MVA (Market Value Added) at Manufacture Industry for The Years 2003-2005. Yogyakarta. International Program, Department of Accounting. Islamic University of Indonesia.

The discussion about measurement of companies' performance has been done whether by internal and external party of companies. External party especially investor probably seek the value of companies performance first before they invest their capital. In other hand, the companies' performance measurement will influence the credibility of companies' value. This research evaluates the performance of companies and correlates the value of companies with the investor responses that in this research they are represented as Economic Value Added (EVA) and Market Value Added (MVA). The period used in this research is from year 2003-2005. Subject of this research is the companies listed on Jakarta Stock Exchange which are involved in manufacture industries. By using purposive sampling method, there are 30 companies based on some criteria has been chosen as the sample. The data used in this research are taken from Indonesia Capital Market Directory (ICMD). By using Rank Spearman Correlations as technical analysis, the result shows that there is strong correlation between EVA and MVA. Therefore there is also a strong correlation between the values of companies with the respond investor supported by the fluctuation graphic of both variable.