The Association between Economic Value Added, Market Value Added and Leverage

Read this article. You must be able to explain how market value added (MVA) is an element of shareholder value.

3. Research Methods

3.1 Mode of Analysis

The findings of the research study were arrived at by using the quantitative research approach. Correlation analysis has been carried out to identify the cause-effect relationship between the predictor variables (EVA, Operating Leverage, Financial Leverage, and Total Leverage) and dependent variable (MVA). Additionally, simple regression method has been used to find out the impact of leverage and EVA on MVA.