The effect of accounting and market indicators on the firm value

Abstract

The aim of this research is to analyze both accounting and market performance indicators and study their impact on the firm value of EMAAR Properties PJSC Corporation operating in UAE. Several statistical analyses were conducted such as descriptive analysis, coefficient of variation, correlation and regression analyses. Based on the coefficient of variation, the results of analysis show high instability and variability over the years. In addition, correlation analysis reveals that accounting-based profitability indicators have are strongly & positively tied to associated performance on the market value to book value indicator. Both earnings per share and price earnings ratio have either negative or weak relationship with other indicators. Moreover, regression analyses indicate that market value to book value indicator is the most determinant indicator on the firm value.