The impact of the balance sheet and the income statement on market value

Javier Ayuso-Estellés (), Alicia Gómez-Tello () and José Villanueva-García ()
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Javier Ayuso-Estellés: Universitat de València, Spain
Alicia Gómez-Tello: Universitat de València, Spain and Universidad Técnica Popular de Loja, Ecuador
José Villanueva-García: Universitat de València, Spain

TEC Empresarial, 2025, vol. 19, issue 2, 112-124

Abstract: The objective of this study is to analyse the relative importance of the balance sheet and the income statement on the market value of companies that are close to file for bankruptcy. To do this, we analyse 149 Latin American, listed, bankrupt companies. Our results show that when a company is close to its dissolution, the relative importance on the balance sheet increases whereas the relative importance of the income statement decreases. This result could be due to the investors ' behaviour. If investors foresee the possibility of a dissolution, they will show a higher interest for the liquidity value, strongly associated to the book value.

Keywords: Market value; book value; balance sheet; net income; bankruptcy (search for similar items in EconPapers)
Date: 2025
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