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The Impact of Leverages and Operating Efficiency on Market Value Added: Empirical Evidence from India

Author

Listed:
  • Rahul Kumar
  • Prince Bhatia
  • Subir Chattopadhyay

Abstract

This article examines the relationship between the market value added and degree financial leverage, degree of operating leverage, and asset turnover ratio of the listed firms in India. The period of study was from 2013 to 2019, and data were collected in annual frequency. Our study concludes that the degree of financial leverage and asset turnover ratio are significantly and negatively associated with the market value added of listed firms in India. We also reported an insignificant relationship between market value added and degree of operating leverage. Our results indicate that promoters holding and firm size are important factors driving the performance of the firms listed in India.

Suggested Citation

  • Rahul Kumar & Prince Bhatia & Subir Chattopadhyay, 2022. "The Impact of Leverages and Operating Efficiency on Market Value Added: Empirical Evidence from India," Vision, , vol. 26(3), pages 351-360, September.
    • Handle: RePEc:sae:vision:v:26:y:2022:i:3:p:351-360
    DOI: 10.1177/0972262921992152
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    References listed on IDEAS

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    2. Manmohan, 2023. "The Impact of the COVID-19 Pandemic on metal, mining, and allied sectors in the Indian Stock Market," International Journal of Accounting, Business and Finance, Indian Accounting Association, Patna Branch, vol. 2(2), pages 28-39.
    3. Simran Gupta & Vaishali & Rahul Kumar, 2025. "Which ownership structure will sustain sustainability? An empirical examination of ESG disclosure," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(3), pages 759-775, September.

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