The Mediating Role of Profitability in the Impact Relationship of Assets Tangibility on Firm Market Value

Mustafa Alathamneh (), Mohammed Ibrahim Obeidat (), Mohammad Abdullah Almomani, Tareq Mohammad Almomani and Nadeen (Mohammed Adnan) Darkal
Additional contact information
Mustafa Alathamneh: Accounting Department, Business School, Jadara University, Irbid 21110, Jordan
Mohammed Ibrahim Obeidat: Accounting Department, Business School, Jadara University, Irbid 21110, Jordan
Mohammad Abdullah Almomani: Accounting Department, Business School, Jadara University, Irbid 21110, Jordan
Tareq Mohammad Almomani: Custom and Tax Science Department, Business School, Jadara University, Irbid 21110, Jordan
Nadeen (Mohammed Adnan) Darkal: Department of Business Administration, Business School, Jadara University, Irbid 21110, Jordan

JRFM, 2025, vol. 18, issue 2, 1-17

Abstract: This study aims to investigate whether the asset tangibility of the listed mining and extraction firms at the Amman Stock Exchange institution affects the market value of these firms and whether firm profitability mediates the impact relationship of asset tangibility on firm market value. To achieve the objectives of this study, secondary data covering the period 2013–2022 of the entire listed mining and extraction firms were collected and used in the analysis. Tobin’s Q is used as a good indicator of firm market value, while return on assets is used as a common indicator of firm profitability. Asset tangibility is the percentage relationship of tangible fixed assets to total assets. Employing both the single and multiple linear regression methods, the results showed a significant impact of asset tangibility on firm profitability and firm market value. The results also demonstrated that firm profitability has a significant impact on firm market value. In addition, the results revealed that firm profitability mediates the effect of asset tangibility on firm market value. The empirical findings have important implications when policies that lead to higher firm value are adopted and correctly followed. More research is recommended to investigate this relationship in other industries.

Keywords: asset tangibility; firm market value; return on assets; Tobin’s Q; intangible assets (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/2/104/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/2/104/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:104-:d:1593589

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().