VALUE DRIVERS ANALYSIS TOWARD EVA (ECONOMIC VALUE ADDED) VALUE CREATION AT PT. HARIFF DAYA TUNGGAL ENGINEERING

• Main Author: Husni (NIM 29105332), Griyandi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/6176
• Institution: Institut Teknologi Bandung

ABSTRACT: <br /> <br /> <br /> <br /> <br /> Increased competition and environment of telecommunication business that always change are encouraging every telecommunication companies to increase its operational performance both in short and long term, so the companys main goal which is maximizing wealth or creating value for shareholders can be realized. The issues can be solved by implementing value based management which purposes are maximizing value creation and giving transparency to all claim holders, that is equity owners and debt owners. In which, every investment decision making are based on the possibility to create value for its shareholders by managing all companys resources. <br /> <br /> <br /> <br /> <br /> Economic value added (EVA) as one of value based management tools are chosen to increase PT. Hariff DTE performance in managing EVA value creation. Performance measurement analysis is being performed to identify and disclose each value drivers influence in Hariff EVA value creations. The result is that four main value drivers that had influence from the biggest to smallest that is operating margin, WACC (weighted average cost of capital), capital turnovers and sales growth. Furthermore, value drivers is being developed to link EVA with value drivers, so Hariff top management could gain value creation depiction and could prioritizing value drivers increase gradually. <br /> <br /> <br /> <br /> <br /> EVA performance measurement implementation is began from full commitment of Hariff top management, being delegate to commercial and project performance division and finance division, developing value drivers, setting challenging targets but also realistic, doing performance evaluation process, and linking to compensation. Therefore, the company could manage and create value for shareholders in continuity manner.