Business, Management and Accounting
4 years ago

Maximizing Company Value: Cement Stocks Affected by Economic and Market Value

Journal of Research in Business, Economics, and Education
Cement Sub Sector Stock Returns Based On Economic Value Added And Market Value Added
Lisa Kustina, Adrianna Syariefur Rakhmat

Paper Summary

The main goal of companies is to increase the value of their shares for shareholders by maximizing cash flow and profits. A study on cement companies found that Economic Value Added (EVA) and Market Value Added (MVA) have a combined 11.7% effect on stock returns, with the remaining 88.3% influenced by other factors. EVA had a negative impact, while MVA had a positive impact, but neither was significant in affecting stock returns.

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