The Association between Economic Value Added, Market Value Added and Leverage: 4.3 Testing of Hypotheses | Saylor Academy

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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

Course Introduction

Course Syllabus

Unit 1: Managerial Accounting

1.1: Introduction to Corporate Accounting and Financial Management

Financial Management and the Firm

The Role of Accounting in Society

Accounting as a Tool for Managers

Introduction to Managerial Accounting

Financial Statement Analysis

1.2: Financial Package

Introduction to Financial Statements

Multi-Step Income Payment

1.3: Assets

Accounting for Receivables

Inventory

Long-Term Assets

1.4: Liabilities

Current Liabilities

Long-Term Liabilities

1.5: Management Discussion and Analysis (MDA) and the Auditor's Opinion

Disclosures and Analysis Overview

The Purpose and Content of an Independent Auditor's Report

Unit 1 Discussion

Study Sessions

Study Session: Unit 1, Part 1

Study Session: Unit 1, Part 2

Study Guide: Unit 1

Unit 1 Assessment

Unit 1 Assessment

Unit 2: Financial Statement Analysis

2.1: Ratio Analysis

Classification

2.2: Profitability Ratios

Profitability Ratios

2.3: Asset Management Ratios

Asset Turnover Ratio Example

Asset Management Ratios

Inventory Costs

2.4: Liquidity Ratios

Liquidity Ratios

Current Ratio Example

Cash Ratio Example

Times Interest Earned

2.5: Debt Management Ratios

Debt Management Ratios

Debt Ratio Example

Debt to Equity Ratio

2.6: Market Value Ratios

Market Value Ratios

2.7: The DuPont Equation

The DuPont Equation

DuPont Analysis

Unit 2 Discussion

Study Session

Study Session: Unit 2

Study Guide: Unit 2

Unit 2 Assessment

Unit 2 Assessment

Unit 3: Financial Management

3.1: Financial Management and the Financial Environment

Capital Budgeting Decisions

3.2: Time Value of Money (TVM)

Time Value of Money

Time Value of Money Fundamentals

3.3: Net Present Value (NPV)

Net Present Value

Use Discounted Cash Flow Models to Make Capital Investment Decisions

3.4: Evaluating Capital Investment Decisions

Compare and Contrast Non-Time Value-Based Methods and Time Value-Based Methods in Capital Investment Decisions

3.5: Other Financial Measures

Calculate a Break-Even Point in Units and Dollars

Rule of 72

Unit 3 Discussion

Study Session

Study Session: Unit 3

Study Guide: Unit 3

Unit 3 Assessment

Unit 3 Assessment

Unit 4: Risk and Return

4.1: Investment Returns

Other Topics in M&A