ANALYSIS OF COMPANY\'S FINANCIAL PERFORMANCE BEFORE AND AFTER A RIGHT ISSUE ON ECONOMIC VALUE ADDED AT TEXTILE INDUSTRY SECTOR

• Main Author: Handoko<br> NIM. 281 99 154, Edy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/5068
• Institution: Institut Teknologi Bandung

</i><b>Abstract: <i></b><p align=\"justify\"> A company that intends to raise a capital through a stock selling may use an existing capital market. By doing it, a company will be able to earn a long term equity. Another way that can be taken by the company is through the Right Issue, that is to sell its new shares to old shareholders first before offer them to the public. The right issue enables a company to earn fund since it provides in flow fresh fund as a capital which is totally unburdening. That seems obviously profitable for the company and hopefully would enhance the financial performance.<p align=\"justify\"> This research titled \"<b>Analysis of Company\'s Financial Performance Before And After a Right Issue on Economic Value Added At Textile Industry Sector</b>\". This research was conducted to verify a significant difference on the level of company\'s financial performance before and after a right issue and by using an indicator to measure a financial performance is EVA to be compared with financial analysis ratio Return On Equity and Debt Ratio.<p align=\"justify\"> The object of this research is four textile companies which have been going public and doing a right issue on 1997. Those companies are PT Karwell Indonesia, PT Teijin Fiber Corporation, PT Polysindo Eka Perkasa, and PT Hanson Industri Utama. The hypothesis of this research is there are a significant influence in the level company\'s financial performance after a Right Issue. The measurement of the financial performance is based on the average EVA\'s value based on data from the company\'s financial statement which was obtained from The Jakarta Stock Exchange. Each was done two year before and after the company applying a right issue.<p align=\"justify\"> Statistical test used in this research is a test differential average test with a small sample (n < 30). Based on the calculation, the result showed t calculated in the amount of - 1,347 for PT Karwell Indonesia, t calculated in the amount of 3,798 for PT Teijin Fiber Corporation, t calculated in the amount of 16,682 for PT Polysindo Eka Perkasa, and t calculated in the amount of 16,836 for PT Hanson Industri Utama. From the four companies, there are three companies that have t calculated more than t table. It means that there are a significant influence on the level of company\'s financial performance after applying a right issue during given period, the influence was a decreasing financial performance because the economic crisis during a period after applied a Right Issue.</p>