Comparison analysis between Economic Value Added (EVA) and traditional measurement (ROA and ROE) method in measuring company performance: case study of food and beverage company listed in Indonesia stock exchange for the year 2004-2008
This thesis compares and analyzes company performance using Traditional Measurement (Return on Assets and Return on Equity) and Economic Value Added (EVA) and also finds the significant difference from Traditional Measurement towards Economic Value Added.rnThe data collecting methods are secondary data like annual reports of 15 Food and Beverage Companies that collected from Indonesia Stock Exchange and collecting theories from library and internet such as textbooks, publications and economic journals that related to the topic to be analyze. rnThe correlation between Traditional Measurement and Economic Value Added (EVA) is relatively low. Furthermore, there are no significance difference from Traditional Measurement towards EVA, neither with ROA towards EVA and ROE towards EVA.rnIn measuring performance, Economic Value Added is a better performance measurement tool rather than Traditional Measurement because besides generate profits for the company, EVA considers cost of capital into account in order to create value added for company and shareholder.
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