Jakarta Islamic Index (JII) Financial Performance Analysis Using EVA and MVA Methods

Authors

  • Acep R. Jayaprawira
  • Sulistyandari Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Riau
  • Alum Kusumah Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Riau

DOI:

https://doi.org/10.54099/ijibmr.v2i1.153

Keywords:

finance performance, EVA, MVA, Jakarta islamic Index

Abstract

Purpose – The study aims to examine the financial performance of firms listed on the Jakarta Islamic Index between 2018 and 2020 using the Economic Value Added (EVA) and Market Value Added (MVA) methods.

Methodology/approach – The study is a descriptive quantitative study with the population is all companies listed on the Jakarta Islamic Index in 2028-2020. The purposive sampling method employed and determined the sample of seven companies. The data gained from the company's financial statements, accessed at www.IDX.co.id.

Findings – According to the findings of this study, the company's financial performance using the EVA method is positive (EVA>0), indicating that the company can generate economic value added. With a positive number (MVA>0), the financial performance of the MVA is similarly good. It signifies that the company can generate market value-added and has managed to expand investor wealth.

Novelty/value – The concept of measuring financial performance based on Value-added (economic value added - EVA and Market Value added - MVA) to overcome the limitations of financial ratio analysis. These concepts are crucial indicators of an investment's ability to create wealth. By using EVA and MVA, this study examined the financial performance of companies listed on the Jakarta Islamic Index.

References

Brigham, E. F., & Houston, J. F. (2019). Dasar-dasar Manajemen Keuangan (10ed.). Jakarta: Salemba Empat.

Fahmi. (2014). Analisa Kinerja Keuangan. Bandung: Alfabeta

Ghanbari, A. M. (2007), the Relationship between EVA and MVA an Emprical Analysis in Indian Automobile Industry. The Journal of Accounting Research 6 (3): 7-22.

Huda, I., Sinaga, A., & Atdanti, S. (2015). The Influence of Corporate Financial Performance on Share Return. Indonesian Journal of Business and Entrepreneurship Vol.1 No.3. Institut Pertanian Bogor.

Humanitisri, N., & Ghozali, I. (2019). Perusahaan Sebagai Variabel Mediasi, dan Visibilitas Sebagai Variabel Moderasi dalam Hubungan Antara CSR dengan Reputasi (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2016). Jurnal Akuntansi Diponegoro, 7(4), 1–11.

Husnan, S., & Pudjiastuti, E. (2012). Dasar – Dasar Manajemen Keuangan (Edisi Keenam). UPP STIM YPKN

Kasmir. (2019). Analisis Laporan Keuangan. Edisi Pertama. Cetakan Keduabelas. PT Raja Grafindo Persada. Jakarta

Keown, A. J., Scott, D. F., Jr., J. D. M., & Petty, W. (2010). Manajemen Keuangan: Prinsip dan Penerapan Jilid 1 (Edisi Kesepuluh). PT. Indeks.

Kustodian Sentral Efek Indonesia (KSEI). 2021. Press Release.

Mathangi, F., & Ramya, H. (2017). Analysis of Impact of EVA on MVA of Companies Belonging to Selected Industries in CNX Nifty. Intercontinental Journal of Finance Research Review. ISSN: 2321-0354 Vol. 5, No. 5.

Otoritas Jasa Keuangan. (2021). Statistik Pasar Modal Syariah. Direktorat Pasar Modal Syariah.

Pasar Modal Syariah. (2021). Market Update Pasar Modal Syariah Indonesia.

Rudianto. (2006). Informasi Untuk Pengambilan Keputusan Manajemen. PT. Gramedia Widiarsarana Indonesia. Jakarta

Rudianto. (2013). Akuntansi Manajemen Informasi untuk Pengambilan Keputusan Strategis. Erlangga

Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta

Downloads

Published

2022-06-27

How to Cite

Jayaprawira, A. R. ., Sulistyandari, & Alum Kusumah. (2022). Jakarta Islamic Index (JII) Financial Performance Analysis Using EVA and MVA Methods. International Journal of Islamic Business and Management Review, 2(1), 128–134. https://doi.org/10.54099/ijibmr.v2i1.153

Issue

Vol. 2 No. 1 (2022)

Section

Articles

License

Copyright (c) 2022 International Journal of Islamic Business and Management Review

Creative Commons License

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

Copyright

Copyright aims to protect the specific way the article has been written to describe an experiment and the results. S International Journal of Islamic Business and Management Review is committed to its authors to protect and defend their work and their reputation and takes allegations of infringement, plagiarism, ethical disputes, and fraud very seriously. Automotive Experiences is published under the terms of the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Authors retain copyright and grant the journal right of first publication (online and print) with the work simultaneously. We use the restrictive license (non-commercial) as follows:

BY (attribution): Users are allowed to share, distribute and redistribute the published article in any medium or format, with an identification of the authors and its initial publication in this journal. Authors are encouraged to post and distribute their articles immediately after publication (e.g., institutional or public repositories, personal websites). Authors are allowed to enter into additional contractual arrangements for the non-exclusive distribution of the published and an acknowledgment of its initial publication in this journal.
NC (non-commercial): Users are not allowed to use the article commercially without the permission of the authors. Authors agree explicitly that the published article is indexed worldwide in databases, repositories and indexation services, even if these services operate on a commercial basis. Authors grant  International Journal of Islamic Business and Management Review explicit the right to include the published articles in databases, repositories and indexation services. 

License

License to Publish

The non-commercial use of the article will be governed by the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). The author hereby grants  International Journal of Islamic Business and Management Review an exclusive publishing and distribution license in the manuscript include tables, illustrations or other material submitted for publication as part of the manuscript (the “Article”) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties.

Author's Warranties

The author warrants that the article is original, written by stated author/s, has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).

User Rights

Under the Creative Commons Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) license, the author(s) and users are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Users must give appropriate credit, provide a link to the license, and indicate if changes were made.

Rights of Authors

Authors retain the following rights:

  1. Copyright, and other proprietary rights relating to the article, such as patent rights,
  2. The right to use the substance of the article in future own works, including lectures and books,
  3. The right to reproduce the article for own purposes, provided the copies are not offered for sale, and
  4. The right to self-archive the article.

Co-Authorship

If the article was prepared jointly with other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.

Royalties

This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by  International Journal of Islamic Business and Management Reviews or its sublicensee.

Miscellaneous

 International Journal of Islamic Business and Management Review will publish the article (or have it published) in the Journal if the article’s editorial process is successfully completed and  International Journal of Islamic Business and Management Review or its sublicensee has become obligated to have the article published.  International Journal of Islamic Business and Management Review may conform the article to a style of punctuation, spelling, capitalization, and usage that it deems appropriate.