The impact of profitability and asset management on firm value and the moderating role of dividend policy: Evidence from Jordan

Abstract

The objective of this study is to examine the influence of profitability and asset management on the valuation of a firm. The data utilized in this study was sourced from the financial statements of industrial firms that are publicly traded on the Amman Stock Exchange. The fixed effects model was utilized for all four economics models in the analysis of the panel data. One of the principal discoveries of this investigation is the favorable impact of the profitability and asset management metrics on the valuation of a corporation. The research findings indicate that the inclusion of dividend payments as a moderating factor in the association between profitability and asset management results in an augmentation of a firm's worth. The positive correlation between dividend payouts and a company's worth is attributed to their link with profitability and asset management. This study has the ability to offer valuable insights into corporate management by examining the aspects that can enhance a company's value. Moreover, it holds significance for both existing and potential investors to discern the determinants that have the potential to augment the worth of a corporation.