Comparison of Company Performance Creating Wealth in Value Added (Wealth Added) in the ASEAN Region

Abstract

In the last 7 years, many companies and bankers are forgetting the fact that a number of state enterprises (SOEs) and private companies that became the company more open financial markets and fiscal policy so as to produce a more intelligent political risk and inflation expectations to a lower value. All this pushed the cost of debt and low capital costs on a global scale. Pension funds from international institutions (and national), government, bankers, bondholders and private equity capital market flooded with liquidity. Foreign direct investment (foreign direct investment) in large numbers into Asia, in some places along with local investment. Now, inflation has been really - really increased due to higher food and fuel prices, which menngakibatkan interest rates rise and lower government subsidies. Expected to gross domestic product (GDP) has decreased, even very large in some cases, even though the recession is not expected to occur. Greater risk and reduced expectations of growth reflected in share prices. Admittedly, there are some among the states and also the industries in Asia, especially among producers and users of commodities. Few companies consider the cost of capital when measuring performance. Companies that exceed the expectations of investors might have good connections, are in the correct industry, has a strong position in research and development has pasarm or floating a very good effort. Success can happen by chance. However, the system to make decisions based on value creation is not institutionalized. A great opportunity waiting for the company - a company in Asia to invest well and use their abilities to secure their markets and compete on the outside. This study aimed to compare the performance of companies that succeeded in creating value added wealth (wealth added) in ASEAN, so the manager (management company) and investors can see how the performance of their stock (wealth added index) among companies in Southeast Asia. Finally, the managers of the company can position the company more competitive in order to see the company's performance in the sense of meaning required rate of return of shareholders. The research method used in this study is explanatory or confirmation that provide explanations or relationships among variables through hypothesis testing in order to obtain comparative performance of the company in creating value-added wealth (wealth added) in ASEAN. Populasi this research is the company who won the ASEAN's Best Wealth Creator In 2010 and 2011 based on research carried out by SWA magazine team working with Stern & Co. Stward. each as many as 100 companies. Sample selection method used was purposive random sampling of countries - ASEAN member countries. Variables used in this study is the Wealth Added Index (WAI) as the dependent variable, while the Current Operating Value (Operating), Future Value Growth (Strategy), Needs Financing (Financing), and Required Return (Corporate Governance) as the dependent variable. The results of this study indicate that the company - a company that prints the value-added wealth (wealth added index) is still dominated by Singapore-based company which amounted to 33 companies. The second sequence is Malaysia, which reached 24 companies, and Indonesia was third, which reached 20 companies. That is among the companies in ASEAN, Indonesia is pretty good and be positive, especially in the group of companies natural resources.

Keywords: Wealth Added, Performance, ASEAN, Strategy

JEL Classification: F2