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.
4. Results and Analysis
4.3 Testing of Hypotheses
Table 5. Hypotheses testing
No. |
Hypotheses |
Results |
Tools |
|
H1 |
There is a significant relationship between EVA and MVA |
Rejected |
Correlation |
|
H2 |
Total leverage exhibits a significant relationship with MVA |
Rejected |
Correlation |
|
H3 |
There is a significant impact of EVA on MVA |
Rejected |
Regression |
|
H4 |
Total leverage is having a significant impact on MVA |
Rejected |
Regression |