The Role of Technology in Financial Management: A Study on Economic Value Added

Financial technology supports company performance, but it cannot be separated from the risks it will face. Good financial management is needed to support company performance by measuring stock returns. The aim of this research is to analyze the implementation of financial technology through economic value added to stock returns which is mediated by business risk. The research method used is a quantitative type by taking data on companies indexed LQ45 for the period 2018 to 2022. Data collection was done through purposive sampling, there were 22 companies out of 45 companies indexed LQ45 on the Indonesia Stock Exchange (IDX). Data were analyzed using a path analysis approach with STATA statistical tools. The research results found that economic value added had an influence on increasing stock returns. This means that efficiency through the implementation of financial technology supports the achievement of company stock returns. Another finding stated that business risk has an influence on stock returns. Furthermore, it was stated that economic value added has a negative effect on business risk. The research findings explain that business risk is not appropriate as a mediator between economic value added in supporting an increase in company returns. Companies are deemed to need to pay attention to business risks, especially technological factors. Considering the importance of financial technology in supporting increased economic value added through efficiency. Technology support for company management is an important part of supporting stock returns.