| dc.description.abstract | Investment aims to obtain the expected return in the future. However, investment is cannot be separated from the possibility risk of loss that must be borne by investors. Therefore, the measurement of the company performance is needed to look at whether the investment activity can provide the expected return or not. There are several approaches to measured company’s performance, such as conventional concept that based on the earnings and cash flow often used as primary indicators. In addition the value based approach is oriented in creating company’s value added that evaluate the costs of capitals as company risk. One of the measurement using value based concept is Economic Value Added (EVA).
This research aims to examine and to analyze an influence of performance measurement by conventional based and value based toward rate of return. This research used Return on Investment (ROI), Operating Cash Flow (OCF), and Economic Value Added (EVA) as independent variables; and Rate of Return (ROR) as dependent variable. The result showed in partial that EVA variable has the positive and significant effect on rate of return, but ROI and OCF showed in partial have negative and significant effect on rate of return. These results suggest that EVA is better than ROI and OCF in predicting the rate of return. These results also confirm some theories that said if the value based measurement better than conventional based. | en_US |
