The Impact of Accounting Indicators and Growth on the Market Value

Farouq Rafiq Altahtamouni () and Zaher Abdelfattah Alslehat ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014, vol. 4, issue 2, 9-18

Abstract: This study aims to investigate the impact of accounting indicators which are the return on assets, return on equity and earnings per share in addition to growth which is measured by sustainable growth rate on the market value which is measured by market share price, stock return and by market value to book value. By the application on the Jordanian Banks from 2002 to 2011, by using the simple regression test, and by using the least squares method, it was clear that all current accounting indicators and the current growth have a positive impact on the market share price and the market value to book value, and there is no effect of the current accounting indicators and the current growth on the stock market return. It also clear that there is a positive impact of future accounting indicators and the future growth on the market value depending on all of market value measurements, and that the best explanatory accounting indicators for the changes in the market value of the Jordanian banks is earnings per share.

Keywords: Accounting indicators; market value; growth rate; return on assets; return on equity; earning per share (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hrmars.com/hrmars_papers/Article_02_The_Imp ... ting_Indicators1.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Article_02_The_Imp ... ting_Indicators1.pdf (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:hur:ijaraf:v:4:y:2014:i:2:p:9-18

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().