The effect of firm size, profitability, liquidity and industry type on firm value
Abstract
The study aims to investigate the relationship between firm characteristics (firm size, profitability, liquidity, and industry type) and firm value in Saudi Arabia for the period 2019–2021. A regression analysis was done to estimate the relationship between these factors and firm value. The sample used in the study is 10 companies from 8 various industries over the period of 2019–2021, chosen randomly. The results reveal that firm size and liquidity have a negative relationship with firm value, but profitability and industry type have a positive relationship with firm size. The results will benefit investors, policymakers, and researchers.
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