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The Impact of Accounting Indicators and Growth on the Market Value

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  • Farouq Rafiq Altahtamouni
  • Zaher Abdelfattah Alslehat

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.

Suggested Citation

  • Farouq Rafiq Altahtamouni & Zaher Abdelfattah Alslehat, 2014. "The Impact of Accounting Indicators and Growth on the Market Value," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 9-18, April.
    • Handle: RePEc:hur:ijaraf:v:4:y:2014:i:2:p:9-18
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    References listed on IDEAS

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    Cited by:

    1. Farouq Altahtamouni & Reem Matahen & Amna Qazaq, 2020. "The Mediating Role of the Capital Structure, Growth Rate, and Dividend Policy in the Relationship Between Return on Equity and Market to Book Value," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 155-164, July.
    2. Farouq Altahtamouni, 2018. "Determinants of Market Value (Case of Jordanian Banks)," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 124-132, January.

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