This study explores the impact of Economic Value Added (EVA) and Market Value Added (MVA) on stock returns, with profitability (Return on Assets - ROA) as a mediating variable, using data from the Indonesian food and beverage sector (2017–2023). The findings reveal that EVA does not have a significant direct effect on stock returns, while MVA significantly influences stock returns, though negatively correlated. Profitability, particularly ROA, was found to mediate the relationship between MVA and stock returns. These results suggest that while EVA is an essential internal performance metric, MVA and profitability hold more relevance for predicting stock performance. The study highlights the critical role of profitability in shaping investor perceptions and emphasizes the need for companies to prioritize profitability metrics and transparent communication to improve stock market outcomes.
Moranty et al. (Fri,) studied this question.