Abstract:
This study examined the impact of Economic Value Added, Degree of Operating
Leverage, Degree of Financial Leverage, and Degree of Total Leverage on Market
Value added. This study utilized the EVA and leverage (DOL, DFL and DTL) as
independent variables and MVA as independent variable. In addition, this
research also identified the most significant influence factor towards Market
Value Added. This research chose the population in food and beverages industry
during the period of 2011-2015 that listed in Indonesia Stock Exchange. Through
purposive sampling and panel data which was obtained from official websites of
each firm and Indonesia Stock Exchange, this research had 30 observations from
six firms in five consecutive years which fulfilled the criteria. This research
adopted quantitative research with fixed effect model, which used some analysis
methods of descriptive analysis, classical assumption, multiple regression analysis
and hypothesis testing. Based on the result, it was concluded that EVA, DOL, and
DFL had partial significant influences towards MVA in food and beverages
industry. Simultaneously, those four independent variables provided 76.823%
influences towards MVA while the rest 23.177% was influenced by other factors.
