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
Negoro, Harry Setyo
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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.