THE EFFECT OF ECONOMIC VALUE ADDED (EVA) ON PRICE TO BOOK VALUE THE ROLE OF INSTITUTIONAL OWNERSHIP IN RETAIL SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE Apriyani

DOI: 10.38035/DIJEFA Abstract: This study examines and analyzes the effect of Economics Value Added (EVA) on the price to book value mediated by institutional ownership in retail sector companies listed on the Indonesia Stock Exchange (IDX). The object of this study is the sector of retail with shares of sharia when listed on the Indonesia Stock Exchange (BEI) period 2015-2019. In order to achieve the goals and objectives, the company increases it’s value by increasing shareholders. Improving the walfare on shareholders can be done through investment and financial policies, and is reflected in share price in the capital market. The higher the share price, the better the owner’s walfare, and the company’s value will also increase. The population of this research is the retail companies as many as 27 companies when the sample is 12 company’s by using a purposive sampling method met criteria for the sample. The data is further analyzed using SmartPLS Vs.3.2.9 by looking at the result of descriptive analysis, coefficient path, and path analysis. The result of the study showed that Economic Value Added (EVA) has a negative and significant effect to Price to Book Value (PBV), the Economic Value Added (EVA) has a negative and not significant effect to institutional ownership, the institutional ownership has a negative and significant effect to Price to Book Value (PBV), in addition institutional ownership does not mediate the relationship between Economic Value Added (EVA) and Price to Book Value (PBV).

manager including in the resolution policy debt. The institutional ownership is the percentage of institutional ownership of shareholders by a legal entity or, financial institutions, insurance companies, pension fund, bank, and the other institutional (Hery, 2017). With the institutional ownership , stakeholders tend to have much more confidence of the company , and this can be a values added for the company. (Hery, 2017). Handoko (2008) has a study about the effect of EVA, ROE, ROA, and the EPS on changes the stock price of the LQ 45 company's on the Indonesia Stock Exchange (IDX), and found that EVA, ROE, and ROA has not significant effect on the changes of stock price. This shows that economic value added will not forever affect the company values with stock prices indicator.Compared with the findings above, Shahirah and Lantania (2016) found that EVA, MVA, dividend policy, and managerial ownership have a significant positive effect on company values.
Economic Value Added never can't influence on company values.Same with the study from Fahmi Nugraha and Muhammad Doddy A. Bahtiar (2012) on them study "The Effect Return On Equity and Economic Value Added to company values (the role in the company's with the syaria stock in Indonesia Stock Exchange (IDX)". The conclusion that is statistically EVA has no effect to Price to Book Value at the trust 95%. Table 1 summarizes the results of previous research. The purpose of this study is to analyze the effect of EVA to PBV, analyze the effect of EVA to Institutional Ownesrhip, analyze the effect of Institutional Ownesrhip to PBV,and analyze the effect of Institutional Ownesrhip mediating the effect of EVA on PBV. The benefits of this research are : 1. As a consideration for the investors to investment in a company with identify the effects of EVA, and institutional ownership on the retail company's. 2. As a consideration for the management of the company's in retail sector to identification insight the factors of EVA, and institutional ownesrhip affect to cmpany values. 3. As a reference and further research information related to EVA, Institutional ownership and company values.
company values show that how good or bad management to manage the equity , this is can be seen from the performance measurement of finance were achieved. The measurement of the company value has developed from conventional to modern and has a better ability to measure company value. Therefore, various parties with an interest in the company can assess the company value using various approaches according to their respective needs. The company value can be measured by Tobin's Q, Price Earning Ratio (PER), and Price to Book Value (PBV). PBV or the ratio of stock prices to book value is often used to assess the price of a stock, whether cheap or expensive, which is usually called stock valuation. Companies with PBV below one are typically considered cheap shares, while PBV ratios above one can be considered expensive shares. PBV ratio shows how many shareholders finance the company's net assets. PBV can be calculated by dividing the price per share of the company concerned with the book value per share. (Basuki dan Pulungan,2020). Price to Book Value (PBV) is the ratio of the share price to book value of a company's equity, which measures the market values on management and the organization as a growing company. Price to Book Value (PBV) is often used as a reference in determining the value of a stock relative to its market price. (Hery, 2018). In the other side, Franita (2018) show that the Price to Book Value (PBV) is a comparison of the price a share to book value. The Price to Book Value (PBV) show how far a company is able to create company value relative to the amount of invested capital, so that the higher of Price to Book Value (PBV) ratio, the more company successful is in creating value.
According to Brigham and Houston (2010: 111), "Economic Value Added (EVA) is a measure of the economic value added produced by a company as a result of activities or management strategies". A positive EVA indicates that the company has succeeded in creating value for the owner of capital because the company is able to generate a level of income that exceeds level the cost of capital. This matter same with the goal to maximised the company values. In the otherwise, if EVA has negative value is showing that the company decline, because of the turnover rate is lower than the cost of capital. The existence of EVA becomes relevant for measuring performance based on the economic value generated by a company, with the presence of EVA, the owner of the company will reward activities that add value and remove facilities that damage or reduce the overall value of a company and assist management in determining the company's internal goals for implications. long term and not just short term.
Institutional ownership is the percentage of share ownership owned by legal entities or financial institutions, such as insurance companies, pension funds, mutual funds, banks, and other institutions (Ayuningtyas, 2013). With institutional ownership, stakeholders tend to have more confidence in the company, and this can be an added value for the company (Sastriana, 2013). The existence of ownership by institutions such as insurance companies, banks, investment companies, and other institutions can encourage more optimal supervision. Such oversight will ensure that managers act in the best interests of the company owners, not just for their own interests.
The hypothesis of this study based on previous research and theory is as follows :  Sugiyono (2016: 2) "The research method is basically a scientific way to obtain data with specific purposes and uses". Based on this statement, research design means a series of research processes starting from planning to conducting research. This research using a causal design, because this causal design examines in depth and thoroughly the causal relationship as well as to find out how the relationship between variables and the problem refers to the objective research, it's to find out what is there has effect of economic value added (EVA ) on firm value with institutional ownership as mediator . The independent variable (X) in this study is EVA (X), the Intervening variable is Institutional Ownership (Z ) and the dependent variable is PBV (Y). The operational definitions of some of the variables that have been described are as follows:

RESEARCH METHODS
1. PBV in this study is calculated based on the distribution of market value or closing price with the book value of a stock in a ritel company listed on the Indonesia Stock Exchange in the period 2015-2019 expressed in ratio scale. 2. EVA in this study is calculated based on the NOPAT reduced by the WACC dan Capital expressed in ratio scale. 3. Institutional ownership in this study is calculated based on the institutional stock indicator divided by the total of shares expressed in ratio scale .
The object Object in this study is retail sector companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019. The subject of the research is the annual report of retail companies whose data are taken directly from the Indonesia Stock Exchange (IDX) website, www.idx.co.id. The population in this study is 27 companies with the sample selection was determined by the purposive sampling method with several provisions, namely (1) registered on the Indonesia Stock Exchange (IDX), (2) actively reporting financial reports and annual reports for the 2015-2019 period, (3) are classified as Islamic stocks.

FINDINGS AND DISCUSSION Descriptive Statistics
The description of the findings begins with a descriptive analysis. Testing with descriptive statistics will provide an overview or description of data seen from the amount of data (N), the average value (mean), standard deviation, variance, maximum, and minimum value of each variable (Ghozali, 2016). The standard deviation value which is still lower than the mean value indicates good data distribution and normal distribution, so that it will give good analysis results, while the standard deviation value that exceeds the mean suggests the data distribution is not good because many data fluctuations are leading to unfavorable analysis results. Based on the results of the descriptive analysis in Table 4, the analysis show that the PBV value has the mean value 3.605 and the standard deviation is 6.963, the lowest value of 0,000 and the highest value of 46.43. Based on the results of descriptive analysis, the PBV deviation standard value exceeds the mean PBV value. It show that PBV has a data distribution that is not very good and contains data with possible fluctuations that cause unfavorable analysis results. Grap of PBV value during the period 2015-2019 in 12 sample companies can be seen in picture 1 as below : Based on the value chart on picture 1 show that the Sona Topas Tourism Industry company is the company that most often has a very high PBV value when compared to other retail companies. In the otherside, Matahari Departement Store (LPPF) is the company that most often has a lowest PBV value when compared to other retail companies during 2015-2019.
The variable of EVA in the table 4 show that the standard deviation of EVA is 6,975 and the mean is 1,351, the lowest value is -16,841 and the highest value is 41,878. So that, the EVA deviation standard value exceeds the mean EVA value It show that EVA has a data distribution that is not very good and contains data with possible fluctuations that cause unfavorable analysis results. Graph of EVA value during the period 2015-2019 in 12 sample companies can be seen in picture 2 as below :

Picture 2. EVA Value Of Sample Companies in 2015-2019
Based on the value chart on the picture 2 show that the Centrama Telekomunikasi Indonesia (CENT) company company is the company that most often has a very low EVA value,while the Sona Topas Tourism Industry (SONA) company is the company that most often has a highest EVA value when compared to other retail companies during 2015-2019.
The Mean based on the results of the descriptive analysis in Table 4 of the institutional variable is 0,766 and the standard deviation is 0,273, the lowest value is 0,320 and the highest value is 1,760. The standard deviation is less than the mean values it show that institutional ownership has a data distribution that is good. Graph of institutional value during the period 2015-2019 in 12 sample companies can be seen in picture 3 as below : Based on the picture 3, Ace Hardware Indonesia (ACES) is the company that most often has a lowest institutional ownership value when compared to other retail companies during 2015-2019, and the Catur Sentosa Adiprana (CSAP) company is the company that most often has a very high institutional ownership value when compared to other retail companies.
In this study, the analyzes of the effect of Economics Value Added (EVA) on the price to book value mediated by institutional ownership in retail sector companies listed on the Indonesia Stock Exchange (IDX) would the analyzed with Partial Least Square (PLS) analysis techniques. Based on the hypothesis developed in this study, the PLS model specifications that will be estimated in this study are as follows (see picture 4). Based on the PLS model specifications in the picture above, all constructs are first-order constructs with one measuring indicator, so that the stages in this PLS analysis only consist of the goodness of fit testing and inner model testing.

Goodnes Of Fit Models
After fulfilling the construct validity and reliability at the outer model testing stage, the testing continues on the Goodness of fit model testing. Fit the PLS model can be seen from the SRMR value of the model. The PLS model is stated to have met the criteria of goodness of fit model if the SRMR value <0.10, and the model declared a perfect fit if the SRMR value <0.08. The results of the PLS model goodness of fit test shows that the SRMR value of the saturated model is 0.000, and the estimated model is 0.000. Because the SRMR value of the model is good on the saturated model and the estimated model is below 0.10, the model is declared a perfect fit and is suitable for testing the research hypothesis. The result of the Goodnes Of Fit Model (GoF) Analysis as below on the tables 5.

Inner Testing Models
Testing the inner model includes the test of the significance of direct influence, examining the indirect effect and measurement of the impact of each exogenous variable on endogenous variables. All of these tests will be used to test the research hypothesis (see Figure 5) With the bootstrapping process and Statstical T testing show that the predicted the causality relationship. The hypothesis in this test is : H 0 : The independent variable (EVA ) has no effect on the dependent variable (PBV). H 1 : The Independent variable (EVA) has effects the dependent variable (PBV) Based the hypothesis, to determine the t table is done at the degrees of freedom (nk-1), where n is the amount of data and k is the number of variables. For the level of confidence is 95% or α = 5%, and then the formula for finding t table is as follows: Data: 12, variable: 3 ,the result of degrees of freedom is = 60-3 -1 = 56 the t table which is 1.673. Based on the test results, using the one-way test, if the p value <0.05 and t count> 1.673 then H 0 is rejected and it is concluded that the independent variable has a significant effect on the dependent variable, if the p value> 0.05 the H 0 is accepted and it was concluded that the independent variable has no effect on the dependent variable. From the results of the significance test, it can be seen that the direction of the relationship between the influence of the independent variable on the dependent. The direction of the relationship can be seen from the original sample value of each relationship effect. If the direction of the influence relationship is positive, then the effect of the independent variable on the dependent variable is positive / unidirectional, if the original sample value is negative, the direction of the relationship between the influence of the independent variable on the dependent variable is opposite. The results of the model estimation as a reference for testing the hypothesis in this study can be seen in picture 5. The result of the direct testing is on the table 6 as below : Based on the table 6, has the result as below : 1) The p value of the effect of Economic Value Added (EVA) on firm value (EVA→ PBV) is 0,000 with a Statistical T of 5,801 and the path coefficient is negative -0,464. Because the p value is 0,000 < 0,05, and the statistical T >1,673 and the path coefficient is negative, it can be concluded that the EVA have a negative and significant effect on firm value. 2) The p value of the effect of Economic Value Added (EVA) on the institutional ownership (EVA→ KI) is 0,891 with the statistical T is 0,137 and the path coefficient is negative -0,021. The meaning of the result is the p value adalah >0,05 with Statistical T <1,673 and the path coefficient is negative, it can be concluded that the Economic Value Added (EVA) has negative and not significant effect on the institutional ownership.

3) The p value institutional ownership on the firm value (KI→ PBV) is 0,002 with
Statistical T is 3,061 and the path coefficient negative -0,287. From the result of direct testing, show that the p value <0,05 with Statistical T >1,673 and the path coefficient is negative, it can be concluded that the Institutional ownership has negative and significant effect on the firm value (PBV).

Testing Indirect Effect
In this study, the institutional ownership variable that mediate the indirect impact of Economic Value Added on firm value. the testing of indirect effect has objective to testing the significance of Economic Value Added the mediated by Institutional ownershp variable. The criteria on this testing is if the p value < 0,05 it be can concluded have significant effect or the meaning is the intervening variable can be mediated the effect of the indipendent variable on the dependent variable.

R SQUARE
In this study, R Square show that the contribution of god/bad the structural models. The criteria in this testing is : if the R2 value = 0,75 → the models is substantial (strong), If the R2 value = 0,50 → the models is moderate (medium), If the R2 value = 0,25 → the models is weak (bad). The result of the testing is on the table 8 as below : Based on the table 8, the R Square show that R Square value of PBV 0,298 is obtained, this show that the contribution of EVA and Institutional ownership to PBV is 29,8%, while the remaining 70,2% PBV variance is influenced by other factors outside institutional ownership and EVA. It can be conclude that this models is weak (bad). Furthermore,the institutional ownership, R Sqaure value of 0,000 is obtained, this show that the contribution of EVA on institutional ownership is 0% dan absolutely 100% the institutional ownership variance is influenced by other factors outside EVA and PBV. This is because the market conditions and condition global economic and fluctuate. Fluctuating the market causing the investors does not investing in this company so the company has bad the firm value.

Hypothesis Testing
Based on the result of PLS analysis, the hypothesis testing result is as below on the Based on the table 9 above, can be concluded as below : 1) The p value the effect of Economic Value Added (EVA) on firm value (EVA→ PBV) is 0,000 with statistic T is 5,801 and path coefficient is negative -0,464. The meaning is, p value 0,000 < 0,05,and statistic T >1,673 and path coefficient is negative so can be concluded that the Economic Value Added the EVA have a negative and significant effect on firm value. so that, H1 is rejected or the EVA→ PBV accepted the H 0 and rejected the H 1 .
2) The p value the effect of Economic Value Added (EVA) on the Institutional Ownership (EVA→ KI) is 0,891 with Statistic T is 0,137 and the path coefficient is negative -0,021.

DISCUSSION The Effect Eva On Pbv
Based on the result of the PLS analysis, it was concluded that the Economic Value Added has negative and significant effect on firm value (PBV). If the company is able to produce the rate of return is greater than from cost of capital, it can be seen that the company succeeded to creating the value for owners of capital and to encourage the demand for shares. If the EVA positive, the higher of firm value would impact on investor interest when investing, if the EVA value is negative, the firm value will be low and will result in low investor interest when investing in stocks (Septiyanti, 2015). The result in this study is, EVA has negative and significant effect on firm value (PBV), so that conclude the EVA in the retail company has not been able to increase firm value. This result of this study, supported by the result of statistic descriptive with the conclude is a tendency for a high EVA, the company is Ace Hardware Indonesia Tbk (ACES) with a low PBV value of 6.68. The results of the study that indicated that EVA had a negative effect on firm value (PBV) was a study by Sobahi et al.

The Effect Eva On Institutional Ownership
Based on the result of PLS analysis, it was concluded that the Economic Value Added has negative and not significant effect on Institutional Ownership. The all company of retail sector has the highest of Economic Value Added are not necessarily able to have a high percentage of institutional ownership either. This is because institutional investors have a tendency to compromise or side with management and ignore the interests of minority shareholders. In addition, the greater the proportion of institutional ownership, the more influence it has on the use of economic resources which causes high capital costs, so that when institutional ownership increases, the company's performance will decline. The results of this study are in line with research conducted by Fitria (2018) in her research entitled "The Effect of Debt Policy, Managerial Ownership, Institutional Ownership, and Good Corporate Governance on Economic Value Added)" with the results of research on institutional ownership having a negative effect on EVA.

The Effect Institutional Ownership On Pbv
Based on the PLS analysis, can be concluded that Institutional Ownership has negative and significant effect on firm value (PBV). The Institutional investors with majority shareholdings are, more likely to side with and cooperate with management to prioritize their personal interests over the interests of minority shareholders. This is a negative signal for outsiders because the strategy of institutional investors alliances with tends management to adopt suboptimal company policies. This result that the negative and significant effect indicates that the investors, are doing the investing analysis not see the side of institutional ownership. This is because companies that work in high institutional supervision do not always provide good performance output. Thus, high institutional ownership does not provide a good signal to investors, and does not increase firm value in the end. The result of this study is, the Institutional Ownership has negative and significant effect on PBV, so that supported by the result on the study from Rahma (2014) entitled "The Effect of Managerial Ownership, Institutional Ownership, and Company Size on Funding Decisions and Company Value" which results in the decision that Ownership Institutional negatively affects PBV.

The Institutional Ownership Not Mediate Eva On Pbv
The institutional ownership will tend to control the company. The control from institutional owners, will prevent occurence that are not desirable from the company. This matter, would maked company financing more effective and efficient, which will attract both investors and potential investors . However, the results of this study indicate that ki does not mediate eva on pbv, the meaning that institutional ownership does not cause effect eva on pbv. The ownership of shares by the institution is not able to contribute in determining the level of income that exceeds the level of the cost of capital, so that the economic value as a result of activities or company management strategies is not able to attract investors to invest which in turn can reduce the firm value. This result of this study is supported by fadillah (2018) entitled "the effect of tax avoidance on company value with institutional ownership as a moderation variable" which resulted in a study that institutional ownership did not moderate or weaken the relationship between tax avoidance and firm value.

CONCLUSION AND SUGESTION
The result of this research conducted have been calculated using sem (structural equation modeling) with the smart pls program. This research anaylized the variables has related with economic value added on firm value (pbv) by the moderate variable is institutional ownership on the retail sector was listed on the indonesia stock exchange (idx) period 205-2019. From the analyzed can be drawn, and the following conclusions can be drawn : economic value added (eva) has a significant negative effect on firm value (pbv), economic value added (eva) has a not significant and negative effect on institutional ownership, institutional ownership has a significant and negative effect on firm value (pbv), and eva cannot have an indirect effect through institutional ownership on firm value (pbv) in the retail company listed on indonesia stock exchange (idx) period 2015-2019.
Based on the hypothesis testing result from processing eva, institutional ownership, and corporate value (pbv) it can be suggested as follows : for the company to be able increasing the eva for interesting the investors with the strikes of the online retail industry so that it is not less competitive, and for the future research hopefully to be able increasing the other variables as dependent variable such as : tobins'q,per,and others.