EVALUATING THE FINANCIAL PERFORMANCE USING THE GROWTH OF EPS, CFO, AND EVA AND THEIR IMPACT TO THE STOCK RETURN OF LISTED TELECOMMUNICATION INDUSTRY IN BEI
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Date
2013-03-16
Journal Title
Journal ISSN
Volume Title
Publisher
10th UBAYA International Annual Symposium On Management, Universitas Surabaya
Abstract
The financial evaluation of the telecommunication industry is very important information not only
in assessing financial performance but also as an input for successful strategic business planning either for
the management of the company or for its share holders. The purpose of this research is to evaluate the
financial performance using three measures which are the growth of Earning per Share (EPS), growth of
Cash Flow Operation (CFO) and the growth of Economic Value Added (EVA) and their impact to the stock
return. This research applied descriptive and statistic method. Statistical analysis applied the Multiple Linear
Regression and Correlation Analysis. The test of the classical assumption such as the normality,
autocorrelation, multicollinearity and heteroscedasticity applied before the linear regression. The purposive
sampling method is used to obtain the sample and there are three telecommunication companies as our
sample which are PT Telkom Tbk, PT Indosat Tbk, and PT. XL Axiata Tbk. The result showed that the growth
of EPS, CFO and EVA tend to fluctuate during the research period of 2006-2010. The three variables effect
significant and simultaneously to the stock return. But partially (a) EPS do not showed significant effect to
the stock return, (b) CFO showed significant effect to the stock return (c) and EVA also showed significant
effect to the stock return.
Description
Keywords
Financial performance, EPS, CFO, EVA, stock return, telecommunication industry