Work

The Effect of Economic Value Added and Market Value Added on Stock Return With Profitability as an Intervening Variable

Year: 2025

Type: article

Abstract: This study explores the impact of Economic Value Added (EVA) and Market Value Added (MVA) on stock returns, with profitability (Return on Assets - ROA) as a mediating variable, using data from the Indonesian food and beverage sector (2017–2023). The findings reveal that EVA does not have a significant direct effect on stock returns, while MVA significantly influences stock returns, though negatively correlated. Profitability, particularly ROA, was found to mediate the relationship between MVA and stock returns. These results suggest that while EVA is an essential internal performance metric, MVA and profitability hold more relevance for predicting stock performance. The study highlights the critical role of profitability in shaping investor perceptions and emphasizes the need for companies to prioritize profitability metrics and transparent communication to improve stock market outcomes.

Source: Journal of Economics Finance and Management Studies

DOI: 10.47191/jefms/v8-i8-26

Authors: Eva Moranty, Nur Aisyah F. Pulungan

Institution: Mercu Buana University

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4413380207