| An Investor invests his capital in a company with any reason. Investors want value gained from the capital he invests in the form of capital gain and dividend. Several instruments can be employed by investors to assess the financial performance of a company, for example, are Return on Assets (ROA), Return on Investment (ROI), and Return on Equity (ROE) which later will affect investors’ opinion about the magnitude of Earning Per Share (EPS) resulted by the company. The high level of ROE value is considered as good as the high level of financial performance which unfortunately has not yet measured the high level of risk contained by an investor for the capital he invested. On such basis, there showed up an approach of Economic Value Added (EVA) which was different in assessing traditionally the financial performance, that is, by also taking into account the capital cost on equity as well as taking into consideration the shareholder’s interest, i.e. to improve the shareholder’s prosperity. In this thesis, the researcher is interested in observing the financial performance measured by EVA method and also its influence upon EPS. As for the objects made as the research material were food and beverage manufacturing industrial companies listed in Jakarta Stock Exchange (Bursa Efek Jakarta/BEJ) from 2001 to 2004. The calculation of financial performance by EVA method on 20 (twenty) food and beverage companies showed 4 companies experiencing a negative growth for 4 years, 1 company experiencing a positive growth for 4 years while the rest, 15 companies, their EVA growth were not stable. Whereas to see the influence of EVA on EPS a simple linier regression and correlation analysis research method was used with the following result: If the level of significant is 5%, then there isn’t any significant influence of EVA on EPS, but if the level of significant is 10%, then there is a significant influence of EVA on EPS. In this research there are certainly constraints in the form of population which was only one industrial sector, the variable researched did not describe specifically the food and beverage manufacturing sector condition and the unstable political economic conditions in Indonesia. Therefore, in order to obtain a more general result, the researcher suggests for the next research to expand the type of sector employed as the sample and the research period to be in more stable state political and economic conditions. |