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.

5. Discussion

5.2 Limitations and Scope of Future Research

One of the major limitations of the study is that the study is based on 3 years of data. Only the listed private banks in Sri Lanka operating under the Banks, Finance and Insurance sector were selected as the sample for the study. Therefore one can extend the study to examine the industry-wise relationship. Moreover, findings reveal that other factors are probably found to be better predictors of MVA rather than the explanatory variables used in the study. Hence, there is a gigantic space for more research in this field.