THE INFLUENCE OF TRADITIONAL ACCOUNTING AND ECONOMIC VALUE ADDED APPROACHES ON STOCK RETURNS OF BANKS LISTED ON JAKARTA STOCK EXCHANGE (JSX)

Taufik, Taufik and Isnurhadi, Isnurhadi and Widiyanti, Marlina (2008) THE INFLUENCE OF TRADITIONAL ACCOUNTING AND ECONOMIC VALUE ADDED APPROACHES ON STOCK RETURNS OF BANKS LISTED ON JAKARTA STOCK EXCHANGE (JSX). Proceeding MFA 2008 . MFA 2008, Serawak, Malaysia, pp. 185-210.

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      Abstract

      This study attempts to investigate which of these two approaches: an accounting (ROE and ROA) or Economic Value Added (EVA) approach that has superior effect on the stock return of banks listed in Jakarta Stock Exchange (JSX) for a period of 2002 – 2005. To conduct this study, a purposive sampling method is employed. Of 25 firms in population, only 17 firms can be taken as samples. To analyze the data, a multiple regression is used to investigate the influence of the two approaches on the banks stock return. It was found that there was a significant influence of these two approaches on stock return. However, the statistical result shows that these two variables could only explain 27.9% of the variation in dependent variable namely stock return. Moreover, the statistical result reveals that EVA approach is superior to accounting (ROE and ROA) approach in influencing the listed banks stock return for the year 2002 – 2005. Since this study uses a sample that is limited to banking firms, future study is recommended to include stock returns from other sectors in JSX firms listed at The Jakarta Stock Ex influencing stock return.

      Item Type: Book
      Subjects: H Social Sciences > HG Finance
      Divisions: Faculty of Economics > Department of Management
      Depositing User: Isnurhadi, SE, MBA, Ph.D
      Date Deposited: 19 Mar 2014 11:58
      Last Modified: 19 Mar 2014 11:58
      URI: http://eprints.unsri.ac.id/id/eprint/3658

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