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

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.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-08-13
DOI
https://doi.org/10.5281/zenodo.16832963
Primary Topic
Financial Reporting and Valuation Research
Type
article
Field-Weighted Citation Impact
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article

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

Zenodo (CERN European Organization for Nuclear Research)
Financial Reporting and Valuation Research
article

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

article en

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.

Zenodo (CERN European Organization for Nuclear Research)
Mercu Buana University (ID)
Openalex Percentile: Top 39%
Financial Reporting and Valuation Research
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The Effect of Economic Value Added and Market Value Added on Stock Return With Profitability as an Intervening Variable · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS