The impact of liquidity ratios on market value (MV) and market value added (MVA): A Case Study of the Bank of Palestine
DOI:
https://doi.org/10.51173/tjms.v2i1.14Keywords:
liquidity, liquidity ratios, market value, market value added, Bank of PalestineAbstract
The study investigated the impact of liquidity ratios on the market value and market value added of the Bank of Palestine, which is listed on the Palestine Exchange. The study was conducted from 2017 to 2023 using the descriptive analytical approach and employing the multiple regression model to analyze the data and test the hypotheses. The study concluded with significant findings, indicating that liquidity ratios have no statistically significant impact on market value. Conversely, liquidity ratios had a statistically significant impact on the market value added by the Bank of Palestine.
References
J. Effendy and D. A. Surjandari, “The effect of market value added (MVA), liquidity and solvency ratio and dividend policy on stock return with firm size as the moderating variable (Study on LQ45 Companies in Indonesia Stock Exchange),” Journal of Economics, Finance and Accounting Studies, vol. 2, pp. 244 253, 2020. DOI: 10.32996/jefas.2022.4.1.16.
K. Al Zahrani, “The Impact of Liquidity on the Market Value of Saudi Joint Stock Companies through 2011 2020,” Journal of Economics, Administrative and Legal Sciences, vol. 6, no. 15, pp. 40 60, May 2022. DOI: 10.26389/AJSRP.K100322.
Djani and A. Messatifa, “The impact of liquidity risk on the market value of the shares of Saudi commercial banks, a standard study using cross sectional data models panel for the period (2020 2022),” Journal of Excellence for Economics and Management Research, vol. 6, no. 2, pp. 99 116, 2022.
S. Stu, “The effect of liquidity ratios and debt ratios on the market value of companies listed on the stock exchange A study of a sample of companies listed on the Qatar Stock Exchange during the period (2009 2014),” M.S. thesis, Dept. Financial and Accounting Sciences, Kasdi Merbah University Ouargla, Algeria, 2016.
R. Mriziq, “The effect of profitability ratios and liquidity ratios on the market value of the quoted institution A study of a sample of institutions listed on the Qatar Stock Exchange during the period (2009 2012),” M.S. thesis, Dept. Financial and Accounting Sciences, Kasdi Merbah University Ouargla, Algeria, 2014.
Ö. Korkmaz and M. Dilmach, “Financial factors affecting the market value of a company: Application to banking and insurance,” Journal of Management and Economic Research, vol. 16, no. 2, pp. 179 201, 2018.
S. Bogdan, S. Bareša, and S. Ivanović, “Measuring liquidity on stock market: Impact on liquidity ratio,” Journal of Tourism and Hospitality Management, vol. 18, no. 2, pp. 183 193, 2012.
V. W. Fang, T. H. Noe, and S. Tice, “Stock market liquidity and firm performance: Wall Street rule or Wall Street rules?” FMA Doctoral Student Seminar, Tulane University, New Orleans, LA, pp. 1 53, 2008.
W. G. Hardin, M. D. Hillii, G. W. Kelly, and J. O. Washamiv, “The market value of REIT liquidity,” Ph.D. dissertation, Florida International University and University of Mississippi, 2009.
G. Aras, Ö. K. Furtuna, and F. M. Yildirim, “The impact of investment and financing decisions on market value in Turkey,” Journal of Business Research Türkiye, vol. 9, no. 4, pp. 120 138, 2017.
M. Aql, Financial Management and Financial Analysis, 1st ed., Amman: Arab Society Library for Publishing and Distribution, 2011.
M. M. Olwan, “Using liquidity ratios and cash flow measures to predict profitability: An applied analytical study on the Palestinian Telecommunications Group,” M.S. thesis, Dept. Financial and Accounting Sciences, Kasdi Merbah University Gaza, Palestine, 2015.
Taneeb and Ebaidat, Financial Management in the Private Sector, 1st ed., Amman: Dar Al Bedaya for Publishing and Distribution, 2009.
M. K. Ercan and U. Ban, Financial Management, 10th ed., Ankara: Kitabevi, 2018.
Investopedia. “What Is Market Value, and Why Does It Matter to Investors?” by James Chen, Mar. 16, 2024.
Investopedia. “Economic Value Added vs. Market Value Added: What’s the Difference?” by Chris Gallant, Jul. 30, 2022.
