MARKET VALUE ADDED AND

1
MARKET VALUE ADDED AND INTERNET-DEPENDENT
FIRMS (SOME EMPIRICAL EVIDENCE FROM ASIAN
REGION) R Shanti D Ottemoesoe
2
INTRODUCTION
Competition
Information Technology
Actions?
Effectiveness and Efficiency
Internet
Internet vs Good performance
Finance Perspective MVA (Market Value Added)
Past research Survey, user satisfaction,informati
on System quality
Whether internet firms and non Internet Firms
has different MVA significantly ?
3
FINANCE LITERATURE REVIEW
The Objectives of most Firms
Maximize shareholders wealth
Maximize economic profit
MANAGERIAL EFFECTIVENESS
Maximize the difference between the market value
of the firms stock
MANAGERIAL ACTIONS
Maximize the amount of equity capital that was
supplied by shareholders
ROIC gt WACC
MVA (Market Value Added)
EVA (Economic Value Added)
MVA and EVA should affect the stock value
(reflect the performance)
4
HYPHOTHESES
H1The mean of Market Value Added (MVA) is
different significantly between Internet Stock
and Non-Internet Stock
One sample t-test
H2The mean of Liquidity ratio is different
significantly between Internet Stock and
Non-Internet Stock
H3 The mean of Solvability ratio is different
significantly between Internet Stock and
Non-Internet Stock.
5
RESEARCH DESIGN
Select the data
Variables
Internet Firm
Non-Internet Firm
MVA
Liquidity
Good economy condition
Good economy condition
Bad economy condition
Bad economy condition
Solvability
6
RESULT
Market Value Added
Liquidity Measures
7
Solvability Measures
8
CONCLUSION
MVA for Internet and Non-internet Firms is not
significant different
Liquidity is significantly different between good
and bad economics condition in Internet Firms
The capability to face the solvability problem
decrease significant in bad economic condition
9
Thank You