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