My Research Scientific Design

Yanita Utami
28219595
3EB15

Title of research : Evaluation of Company Performance use Economic Value Added method (EVA) – subject : Television Companies

Background :

Commonly, evaluation of company performance is calculate based on financial ratio due one specific period which based on financial report that be made by the company. Purpose of financial ratio is for evaluate performance of company for one accounting period, moreover for take the strategy decision which will be determined by the company to the next accounting period.

Evaluating based on financial ratio is very depend on method or accounting treatment which be used in construct the financial company’s report. This situation impact the imperfection or the weakness to the traditional accounting measures. Therefore, performance and achievements of company which be measured based on financial ratios could not be accounted again.

For anticipate many problems which come in performance financial measures based on accounting’s data, then arose the thought of financial performance measures based on Economic Value Added (EVA). EVA is the measure of economic value added which produced by the company as a result from activity or management strategy with EVA, the owner of company will only give the return of activity which added the value and discard the activity that have possibility to ruin or reduce the entire value of a company.

Method of the research :

The research methods that be used is the Economic Value Added method which determines wether a company has a value creation (value created) or destruction of value (destroying value).

Data/Variable :

The data that be used are the secondary data financial statement balance sheet and income statement that can be taken from the website www.idx.co.id. We have two research variables. Two companies which is engaged in the same field, the television companies. They are Indosiar Karya Media Ltd.co. and Surya Citra Media Ltd.co. period of 2008-2012.

The Analysis is used :

The analysis used the descriptive quantitaif analysis, where the analysis clarify the situation of the state of he company through the calculation of the numbers that have been through.

Methods of data collection :

Secondary data collection methods as well as researching, assessing, and reviewing the literature related to the problem under study.