The effect of financial receivables on the company's market value (An analytical study of data from a sample of companies and banks in the Dubai Financial Market for the period (2012-2021))
DOI:
https://doi.org/10.25007/ajnu.v12n4a1543Abstract
The research aims to explain the influential relationship of financial receivables on the company’s market value by analyzing data from a sample of companies and banks in the Dubai Financial Market for the period (2012-2021). This research also aims primarily to understand the concept of each of receivables in their discretionary and non-discretionary forms and to conduct financial analysis. The statistician then showed the relationship between each of the receivables and the market value of the company. The value of companies and banks was estimated using Tobin's Q formula, while financial receivables were measured and separated into discretionary receivables and non-discretionary receivables by relying on a three-equation model that was developed by (Kothari). et al., 2005) in a sample of 16 banks and companies listed on the Dubai Financial Market. The data was analyzed in the program (SPSS v.26), and a negative relationship was found and documented between each of the receivables and the market value, and that financial receivables contribute to explaining the manipulation of profits (i.e. earnings management), whose effects are reflected in the decline in the market value of the banks and companies in the sample. The research also suggested that the management of the Dubai Stock Market and other regulatory authorities in the UAE work to develop legislative and legal remedies that oblige companies and banks affiliated with that market to adopt methods that improve disclosure controls and transparency in preparing financial reports for those companies and banks.
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